Quantitative Assignment, Week 1. Part 1
Determine in which statement the following items belong.
FIN2030 Quantitative Assignment, Week 3, Lacy DePew
1. Stock. What is the value of a stock with a
a. $2 dividend just paid and an 8% required return with 0% growth?
b. $3 dividend just paid and a 9% required return with 1 % growth?
c. $4 div
What are the common features of a bond and how would each affect the value of a bond? How
would each affect the risk of a bond?
Bonds have interest rate risk, because the yield to maturity at a given point in time changes
with market interest rates (Week
Below is a list of common features of a bond and an explanation of how each common feature
affects the value of the bond along with the risk of the bond.
1) Par value is a common feature of a bond because it represents the face value of the bond. Say I
Describe the return (income) an investor can receive from common stock.
Explain the methods of how to value common stock.
Stock in general involves risk. In particular, common stockholders have the lowest
priority claim on a firms earnings; common stock b
Why is time value of money an important concept?
To buy or save, that is the question. However it is a bit more complicated than it seems. For
individuals to be able to make sound financial decisions they need to have a general
understanding of the time v
Describe time value of money.
According to the online lecture The main elements of time value of money (TVM) are
money (cash), interest, and time (Week 2, Time-Value of Money Introduction, p. 1). The
first element, money, can be received in one lump sum,
FIN2030 Quantitative Assignment, Week 2
1. Future Value. What is the future value of
a. $773 invested for 14 years at 11 percent compounded annually?
b. $210 invested for 7 years at 6 percent compounded annually?
c. $650 invested for 10 years at 9 percent
What are the perspectives of using ratio analysis?
Ratio analysis is used to help evaluate complex and very detailed financial statements.
Numbers are found in abundance in financial statements. Ratio analysis brings a
method to the madness in structuring
The chosen stocks were analyzed using the Capital Asset Pricing Model (CAPM) and
beta calculations to determine their collective risk if held in a portfolio as opposed to being held
as a stand-alone asset. According to our text, the CAPM is a model based
Online Brokerage Firms
The three online trading sites I have chosen to research are Fidelity, E*TRADE, and
Charles Schwab. I chose these three because I see their commercials quite frequently on TV. I
do not own any stocks so this was a great learning exp