USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2014
Homework Assignment #1
[due: Wednesday, February 12th at the beginning of class]
You may work in groups of up to 3 people. Please hand in a single copy of your
answers, and wr
USC  MARSHALL SCHOOL OF BUSINESS FBE 441 Investments P. Matos Spring 2010
Solutions to Homework Assignment #1
1. You sell short 100 shares of Loser Co. at a market price of $45 per share. What is your maximum possible loss? SOLUTION: When you sell short
FBE 441
Midterm Exam: Spring 2012
Page 1
FBE441: Investments
Spring 2012 Midterm Exam
Prof. David Solomon
INSTRUCTIONS
You have one hour and forty minutes to complete this exam. This exam is closed book
and closed notes, except for one sheet of 8.5x11 not
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments P. Matos Spring 2010
Homework Assignment #2 (revised 2/17)
[due: Monday, February 22]
Q.1. Consider the following data:
Expected Return
Russell Fund
16%
Windsor Fund
14%
S&P Fund
12%
Standard Deviation
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments P. Matos Spring 2010
Homework Assignment #3
[ due: Monday, March 29 ]
1. Suppose CAPM is true. You are considering investing in an equally weighted
portfolio of two stocks, A and B. The betas of these
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2015
Homework Assignment #2
[due: Monday, March 2nd at the beginning of class]
Questions
Q.1. You invest $100 in a risky asset with an expected rate of return of 0.11 and a standar
FBE 441
Midterm Exam: Spring 2015
Page 1
FBE441: Investments
Spring 2015 Midterm Exam
Prof. David Solomon
INSTRUCTIONS
You have one hour and thirty minutes to complete this exam. This exam is closed book
and closed notes, except for one sheet of handwritt
USC  MARSHALL SCHOOL OF BUSINESS FBE 441 Investments P. Matos Spring 2010
Homework Assignment #3 Solutions 1. Suppose CAPM is true. You are considering investing in an equally weighted portfolio of two stocks, A and B. The betas of these stocks to the ma
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2015
Homework Assignment #1
[due: Wednesday, February 4th at the beginning of class]
You may work in groups of up to 3 people. Please hand in a single copy of your
answers, and wri
3. Mean return: 1.087 SD: 6.464 Sharpe ratio: 0.122
4. Some of them are positive and some of them are negative, that means we need short some of
the funds and put more weight on some of the funds.
w1
w2
0.543527
4
3.0435159
6
w3
2.02055
9
w4
3.5610
2
w5
1
: Homework Assignment 4
Question 1 a) When wABC = 1.4 and wPQR = 0.4, i1 = 0.4 X 1.7 + 1.4 X 0.6 = 0.16 i2 = 0.4 X 1.3 + 1.4 X 0.9 = 0.74
b) When wf = 1 and wC = 1,
i1 = 1 X 0.0 + 1 X 0.16 = 0.16 i2 = 1 X 0.0 + 1 X 0.74 = 0.74
c) Find portfolio wher
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments P. Matos Spring 2010
Homework Assignment #5 due: Wednesday, April 28
1. A coupon bond pays interest of $100 annually has a face value of $1,000, matures in 5 years,
and is selling today at $928 (at a d
1. The Average return of high momentum is 0.009493044, and the average return of low
momentum is 0.005577317. The standard deviation of high momentum is 0.057536736,
and the standard deviation of low momentum is 0.049171816. The Sharpe ratio of high
momen
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2014
Homework Assignment #2
[due: Wednesday, March 5th at the beginning of class]
Questions
Q.1. You invest $100 in a risky asset with an expected rate of return of 0.11 and a stan
USC  MARSHALL SCHOOL OF BUSINESS FBE 441 Investments P. Matos Spring 2010
Homework Assignment #5 Solutions 1. A coupon bond pays interest of $100 annually has a face value of $1,000, matures in 5 years, and is selling today at $928 (at a discount from pa
USC  MARSHALL SCHOOL OF BUSINESS FBE 441 Investments P. Matos Spring 2010
Homework Assignment #4  Solutions 1. Consider a market where two factors are sufficient to describe the returns on common stocks. For an asset i, the assets expected return is giv
Prof. David Solomon
FBE 441
Investments
Lecture 6:
Testing the CAPM and
the APT Model
Tests of the CAPM
The Value and Size Anomalies
The FamaFrench 3 Factor Model
The APT Model
Readings:
BKM chapters 9 and 10
Lecture Outline:
 Lecture 5 :
 Markets in E
FBE441: Investments
Solutions for Spring 2008 Midterm Exam
* VERSION (1) *
Policy on regrading: If after reading the solution, you genuinely believe that the
score given was in error, you may submit your exam for regrading during office
hours. However,
Professor Juhani Linnainmaa
USC Marshall
FBE 441: Investments
Problem Set #3: Answer Key
Due: Week 7/Tuesday at the beginning of class.
Instructions: Please show enough work so that it is possible to infer how you
arrived at the solution. If applicable, y
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2015
Solutions to Homework Assignment #1
1. Toyota stock has the following probability distribution of expected prices one year
from now:
a) If you buy Toyota today for $55 and it
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments
David Solomon Spring 2015
Homework Assignment #2
Solutions
Questions
Q.1. You invest $100 in a risky asset with an expected rate of return of 0.11 and a
standard deviation of 0.21 and a Tbill with a r
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments P. Matos Spring 2010
Solutions to Homework Assignment #2
Q.1. Consider the following data:
Expected Return
Russell Fund
16%
Windsor Fund
14%
S&P Fund
12%
Standard Deviation
12%
10%
8%
The correlation b
FBE 441
Final Exam: Spring 2010
Page 1
FBE441 Investments
Spring 2010 Final Exam
INSTRUCTIONS
You have two hours to complete this exam. This exam is closed book and closed notes,
except for two sheet of 8.5x11 notes (both sides). Calculators are allowed.
University of Southern California
Marshall School of Business
FBE 441: Investments  Spring 2010
Professor Pedro Matos
Solutions to Additional Practice Questions
for Lecture 10  Fixed Income
1. A coupon bond that pays interest semiannually has a par val
USC  MARSHALL SCHOOL OF BUSINESS
FBE 441 Investments P. Matos Spring 2010
Homework Assignment #4
(due: Wednesday, April 14)
1. Consider a market where two factors are sufficient to describe the returns on common stocks.
For an asset i, the assets expecte
FBE 441 Investments Prof. Pedro Matos
Lecture 10: Fixed Income
Basics on Bonds / Fixed Income Managing Bond Portfolios
Readings: BKM chapters 14,15,16
Note: To learn more take FBE 435: Applied Finance in Fixed Income Securities
Lecture Outline:
 Basics
MARSHALL SCHOOL OF BUSINESS
University of Southern California
FBE 441: Investments
Prof. Christopher S. Jones
Fall 2012
Course Syllabus
This syllabus describes the policies, procedures, and content of this course. Please read it.
Contact Information
Instr
FBE 441 HW 1 Siyuan Cang, Sichen Cai, Yilin Wan
1. Toyota stock has the following probability distribution of expected prices one year from
now:
a) If you buy Toyota today for $55 and it will pay a dividend during the year of $4 per
share, what is your ex
FBE 441
Final Exam: Spring 2013
Page 1
FBE441 Investments
Spring 2013 Final Exam
INSTRUCTIONS
You have two hours to complete this exam. This exam is closed book and closed notes,
except for two sheet of 8.5x11 notes (both sides). Calculators are allowed.
Prof. David Solomon
FBE 441
Investments
Lecture 6:
Testing the CAPM and
the APT Model
Tests of the CAPM
The Value and Size Anomalies
The FamaFrench 3 Factor Model
The APT Model
Readings:
BKM chapters 9 and 10
Lecture Outline:
 Lecture 5 :
 Markets in E
Prof. David Solomon
FBE 441
Investments
Lecture 5:
Asset Pricing and the
CAPM
Markets in Equilibrium and the CAPM intuition
The Capital Asset Pricing Model (CAPM)
Readings:
BKM chapters 9 and 10
Lecture Outline:
 Lecture 5 :
 Markets in Equilibrium

Investments Summaries
Lecture 1/2: Overview of Equity Markets, Trading of Securities
and Portfolio Management
(Chapter 1,2,3,4: )
Chapter 1: The Investment Environment
Investment
o Current commitment (sacrifice) of money or other resources in
the expectat
FINAL EXAM STUDY GUIDE
MODULE 4
Want Power because of:
o Health
o Wealth
o Efficacy
Barriers to Power because of:
o The self
o The just world effect
Power is the capacity to change peoples behaviors, overcome resistance, and get people
to do things provid