NAME: SOLUTIONS
Test Quiz 3
FINA 363 001/002
Spring 2014
Dr. S. Nikolova
YOU WILL BE GIVEN PARTIAL CREDIT ONLY IF YOU SHOW ALL YOUR WORK.
Question 1.
Asset
Expected Return
Standard Deviation
Beta
Stoc
Things to Know and Do
FINA 363
Exam 1
Spring 2014
Prof. S. Nikolova
All vocabulary is fair game.
Chapter 5
Be able to calculate holding period returns for stocks and bonds. Be able to annualize these
NAME: _
Test Quiz 4
FINA 363
Spring 2014
Dr. S. Nikolova
Question 1. (1.5 pts.)
What are the three criteria that a strategy must meet to be considered an arbitrage strategy?
1.
2.
3.
Zero-investment:
Syllabus
FINA 363: Investment Principles
Dr. S. Nikolova
Spring 2014
Phone: 402.472.6049
Email: [email protected]
Office: CBA 238
Office Hours: Tu/Th 9:30 - 11:30AM or by
appointment (except for exam
Test Quiz 1 Short Answers
What type of information will be most useful when making security selection decisions?
A: Security selection refers to choosing which securities to hold based on their valuat
Things to Know and Do
FINA 363
Exam 2
Spring 2014
Prof. S. Nikolova
All vocabulary is fair game.
Chapter 9
Be able to apply the CAPM. That is, be able to calculate the expected return, alpha and beta
Question 1
The four-factor model used to construct performance benchmarks for mutual
funds uses the three Fama and French factors and one additional factor
related to _.
Correct Answer:
momentum
Ques
Stocktrak: Rules and Requirements
FINA363 - Fall 2016
You are required to manage actively an investment portfolio, which will have an initial value of
$1,000,000. You are allowed a maximum of 300 trad
Chapter Four
MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES
Chapter Overview
Investment Companies
Mutual Fund Styles
Fund Returns and Fees
Hedge Funds
4-2
Investment Companies
Investment companies take
Chapter Two
ASSET CLASSES AND FINANCIAL INSTRUMENTS
Chapter Overview
Asset allocation Asset classes
Money markets vs. capital markets
Types of money market instruments
Types of capital market securi
Chapter 3
HOW SECURITIES ARE TRADED?
Primary vs. Secondary Security Sales
Primary
New issue
Key factor: issuer receives the proceeds from the sale
Secondary
Existing owner sells to another party
I
Investment Principles
Instructor: Dr. Liying Wang
Office: CoB 425 D
Office hours: Monday and Wednesday 2:50 3:50 PM or by
appointment
1
An asset-pricing class
Part 1: Introduction of securities and h
Part 2. Portfolio Theory and Practice
Chapter 5. Risk, Return, and Historical Record
Chapter 6. Capital Allocation to Risky Assets
Chapter 7. Optimal Risky Portfolio
Chapter 8. Index Models
1
Chapter
3
The same game. But you think that you get some hints and
your winning probability is larger than .
The winning probability is 0.6
The winning probability is 0.8
The winning probability is 0.9
3
Ther
wA A
wBB
w B B
wA A
Variance covariance matrix
Var/Cov Matrix 2 risky
INDEX MODELS
Chapter 8
3
1
Vp
E rp rf
wBB
wA A
wA A
Variance covariance matrix
Var/Cov Matrix 2 risky
wi
Max S p
25%
50%
25%
Normal
Boom
12%
5%
1%
E[r]A
-4%
2%
6%
E[r]B
?
Portfolio
Find the expected return and the standard deviation of asset A, B, and the
portfolio.
Probability
Economy
Recession
Your portfolio i
Chapter 9
THE CAPITAL ASSET PRICING MODEL
(CAPM)
1
Agenda
Asset Pricing
What determines the prices that we observe in the market?
Capital Asset Pricing Model
Assumptions
Equilibrium
Estimation
Interpr
NAME: digfk'tﬂxﬂ-rii iii"
Short Exam 1
FINA 363 884 A
Spring 2016
Dr. S. Nikolova
(You will be given partial credit only if you show all ofyour work.)
Problem I.
a.) You purchased 500 shares of commo
Chapter 11
The Efficient Market Hypothesis
INVESTMENTS | BODIE, KANE, MARCUS
Agenda
Market Efficiency
Definition
Information
Efficient Market Hypothesis
Versions of the EMH
Testing EMH
Weak for
Chapter 10
Arbitrage Pricing Theory and Multifactor Models of
Risk and Return
INVESTMENTS | BODIE, KANE, MARCUS
Agenda
From CAPM to Arbitrage Pricing Theory (APT)
Arbitrage Pricing Theory (APT)
Mul
Investments
Summer 2017
Quiz 2
Name: _
Choose the best possible answer for multiple-choice questions. You must show all of your work for shortanswer questions to receive credit. Round all answers to t
Investments
Summer 2017
Quiz 1
Name: _
Choose the best possible answer for multiple-choice questions. You must show all of your work for shortanswer questions to receive credit. Round all answers to t
Chapter 11
Efficient Market Hypothesis
1
EMH prices immediately reflect all available and relevant
information
Market participants process all relevant information rationally
and quickly
Figure 11.1 C
Chapter 3
HOW SECURITIES ARE TRADED?
Primary vs. Secondary Security Sales
Primary
New issue
Key factor: issuer receives the proceeds from the sale
Secondary
Existing owner sells to another party
I
Chapter 15
THE TERM STRUCTURE OF INTEREST RATES
1
Forward rates
Term structure and yield curve
Theories of the term structure
2
Forward Rates
3
More on Discount Rates
Discount rates for cash flows
Chapter 9
CAPM
1
Overview
Assumptions of the CAPM
Predictions of the CAPM
CML and SML
Estimating the CAPM interpret alpha
Tests of the CAPM
2
Assumptions
General idea: Individuals are as alike as