FINA3331_MID1_Review - relationship • between the...

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FINA3331-Review Sheet for Midterm 1 The exam is closed notes and books. 12 multiple choice questions (1 point each). All of the multiple choice questions will be from your study guides). You can use a regular page 8x11 and you can write on only one side anything you want. I will collect them with your exams so put your name on them. Investment bankers, regulation FD, risk aversion, risk and returns Comparisons between municipal bonds and corporate bonds Direct and indirect investing Callable bonds Closed end funds, open end funds, unit trusts, hedge funds, ETFs, load and no load funds “Firm” and “Best effort” underwriting agreements IPOs, seasoned equity offerings, primary and secondary markets Specialists, brokers, margin trading, types of trading orders Risk and return, total return, what happens to an investor’s returns if the
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Unformatted text preview: relationship • between the exchange rates in his home country and the country of his investment change 7 Problems - 4 of them on short selling (Each problem will be worth 1 point) 1. Municipal vs Corporate bonds (1 point) 2. Calculate the value of a value weighted index after one of its stocks had a split (2 points) 3. Short selling problem with 4 parts. You should know how to calculate a) the maximum amount the investor can borrow and the minimum the investor needs to deposit (based on the initial margin) b) the margin c) the maximum price the stock can rise before receiving a call and d) additional funds needed. (4 points) 4. Total returns (in terms of dollars) when investing abroad (similar to the problem we did in class for chapter 6) (1 point)...
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