47. A company sells a product which has a unit sales price of $5, unit variable cost of $3
and total fixed costs of $120,000. The number of units the company must sell to break
even is (Points: 4)
60,000 units.
24,000 units.
240,000 units.
40,000 units.
4
FINC 326
PopQuiz #1
Fall 2013
Please show all work and formula for full credit. No partial credit will be given. Good Luck!
Probability  Rate of Return 

A 
B

You have $10,000 and want to invest $4,000 in Project A,
and $6,000 in Project B.
0.5 
FINC 490 05SP14
Prof. Richard Lord
Lady K Rivadeneira
01/30/2013
1. You are trying to establish a reasonable value for the stock of a firm that recently
announced that EarningsperShare of $2.47 for the completed fiscal year. You
feel it is reasonable to
FINC 321
PopQuiz #5
Spring 2013
Please show all work and formula for full credit. No partial credit will be given. Good Luck!
Probability  Rate of Return 

A 
B

You have $10,000 and want to invest $4,000 in Stock A,
and $6,000 in Stock B.
0.5
0.5
1. What is the X (t = 1) if the discount rate is 5% for the first year, 6% for the second year and 7% for the
third year?
Time
0
1
2
3
Cash Flows 1,000
X
2X
3X
b. $189.81.
1,000 = (X/1.05) + [2X/(1.05)*(1.06)] + [3X/(1.05)*(1.06)*(1.07)] = 5.2684X => X =
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HOPE THIS HELPS YOU FIGURE OUT YOUR HW ASSIGNMENT
Problem Set 1 covering Modules 1, 2 & 3
Each question is worth 5 points. Please type your response after each question. If
you handwrote any part of the exam, please scan the entire exam in pdf format
and
Problem Set 1 covering Modules 1, 2 & 3
Each question is worth 5 points. Please type your response after each question. If
you handwrote any part of the exam, please scan the entire exam in pdf format
and email to the professor. Questions 112 require SH
FINC 561
Investments for Managers
Module 5a: Modern Portfolio Theory Optimal Risky Portfolios: Market vs. Idiosyncratic
Risk
ThreeStep Investment Process
1.Allocation across risky assets to arrive at an optimal risky
portfolio (Module 5)
2.Capital alloca
Review
Asset classes stocks, bonds, derivatives (options & futures)
Time value of money: valuing cash flows
No Free Lunch risk/return tradeoff & market efficiency
Active vs. Passive Management
Market Indices: Stock (cap wt vs price wt; US vs. nonUS
FINC 561
Investments for Managers
Module 1: Securities Markets
Course Roadmap
M8: Implementation
M1: Introduction to
Investment Environment
M2: Asset Classes; Time
Value of Money; Trading
M6: Capital Asset
Pricing Model
M5: (MPT) Modern
Portfolio Theory
M
Liquid Alternative Risk Premia
Draf
Institutional investors seek to strike a balance between capital preservation, liquidity and return
objectives. Pension plans have embraced the endowment model and continue to derisk their portfolios
by extending durat
Reflections_Ennis.fm Page 44 Monday, September 12, 2005 11:03 AM
Are Active Management Fees Too High?
Richard M. Ennis, CFA
If the potential
payoff from active
management has
waned since 1960,
why is the price of
active management
at or near its
alltime
by Gary P. Brinson, BrianD. Singer and GilbertL. Beebower
Determinants
of Portfolio
Performance
1:
An Update
Thisarticlepresentsa framework
for determiningthecontributions
of differentaspectsof the
investment managementprocessasset allocationpolicy, acti
FINC 561
Investments for Managers
Module 6a: Capital Asset Pricing Model
(CAPM)  Overview
CAPM (Capital Asset Pricing Model)
Equilibrium model
It helps answer
CAPM is NOT
Explains how
securities should
perform under ideal
conditions and a
prescribed set
FINC 561
Investments for Managers
Module 3a: Historical Returns & Risk
Interest Rates
Interest Rate Determinants
Interest rates determine the price and value of bonds
What determines the level of interest rate?
Supply
Households
Demand
Businesses
Governm
Arithmetic vs. Geometric Returns
Assume that the return in year 1 (ry1) = 25% and the return in y2 (ry2) = 25%
A. What is the arithmetic average return over the period?
ravg =
(+25 +25 )
= 0%
2
B. What if you invest $100 and in year 1 earn a 25% retur
Module 7 Assignment: The questions below relate to the readings and Module lectures. Please
type all short answer responses. Responses to questions requiring calculations should be
typed or neatly handwritten.
1.
2.
3.
4.
What is meant when we say that s
Module 8 Assignment: The questions below relate to the readings. Please type all short
answer responses. Responses to questions requiring calculations should be typed or
neatly handwritten.
1. What does it mean when a fund charges a load? Who gets the mo
Module 6 Assignment: The questions below relate to the readings and Module lectures. Please
type all short answer responses. Responses to questions requiring calculations should be
typed or neatly handwritten.
1. What is the definition of beta and what d
Montclair State University
School of Business FINC 561
Course Syllabus Summer 2017
Section 21: Wed 6:30 p.m.  9:40 p.m. Bus School 211 (May 22 Jun 29)
Section 22: Thur 6:30 p.m.  9:40 p.m. Bus School 210 (May 22 Jun 29)
Instructor Information
Michael Ra
Module 4 Assignment: The questions below relate to the readings and Module lectures. Please
type all short answer responses. Responses to questions requiring calculations should be
typed or neatly handwritten.
1.
2.
3.
4.
What is the key difference betwe
Mirna Hanna
1. Agency Problems are conflicts that happen when managers make decisions based off what
would benefit them rather than thinking of the shareholders.
3 Mechanisms:
A. Giving managers a compensation that is related to the success of the firm th
Liv Arruda
May 31, 2017
Module 1 Assignment
Module 1 Assignment: The questions below relate to the readings and Module lectures.
Please type all short answer responses. Responses to questions requiring calculations
should be typed or neatly handwritten.
FINC 561
Module 2 Assignment
1. Assuming a marginal federal, state and local tax rate of 30%, what is the tax
equivalent yield of a tripletaxfree municipal bond yielding 3%? What is the
interpretation?
The tax equivalent yield is equal to 4.29. Using th
14. Investment Plan 1: FV = 20,000(1+.06)^20
FV= $64,142.71
Investment Plan 2: $1,000,000$64,142.71= $935,857.29
Future Value of Annuity of $1= 57.275
Annuity= $935,857.29/57.275= $16,339.72
Yearly investment for 20 years is $16,339.72 per year
15. Annua
FINANCE
1. Items that will be impacted on the balance sheet are shortterm investments
(currently 379 million), inventories (currently 517 million), and property, plant, and
equipment (currently 3,442 million). Shortterm investments may be utilized and
p