Explain the essence and mechanics of forwards contracts.
Give an example of three types of futures contracts.
How can options be used for hedging? What's the difference with hedging and speculation?
1)Explain the essence and mechanics of forwards contract
What is the effective rate of interest? What makes it important?
What are five broad issues in the bond market?
What is the concept cost of capital?
1) What is the effective rate of interest? What makes it important?
The effective interest rate is the tru
UNIT #1 WEEKLY QUIZ ANSWER SHEET
Describe and Investment Policy Statement (IPS):
An IPS details the organizations procedures for all client investments
An IPS is created by the Board of Trustees
An IPS is a FINRA required document
Elements of the Financial System
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Identify the six essential elements of the financial system
The Problem with Illiquidity
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Discuss the mathematics of portfolio risk by looking at return, variance, coefficient, and standard
Now explain difference between systematic and un-systemic risk, can we ever get rid of systematic risk?
In your opinion, discuss benefits of act
Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of
their portfolios? If so, why pay a premium?
What is so important about beta coefficient?
Lastly, what have you thought to be most valuable in this c
What is the primary market?
What is a warrant?
What is the Gordon Growth Model?
1) The Primary Market, also known as a New Issue Market, is where new securities are issued it is part
of the capital market. Corporations, national and local governm ents, an
Explain Markowitzs train of thought about why investors should seek an efficient portfolio.
Is it possible to construct a truly risk-free portfolio?
Is it true that efficient porfolio's diversification goal is to determine a standard deviation lower than
UNIT #2 WEEKLY QUIZ ANSWER SHEET
Although you have made no deposits or withdrawals from your emergency fund savings
account at the bank, the account balance has risen during the past three years from $15,000
to $17,613.32. What h
1) Explain the organization structure of the Money Market
2) Money marketr is broadlly a compoent of financial markets of any country.Money market which
provides liquidity to the financial system and capital markets makes financial markets of that