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PACE UNIVERSITY, LUBIN SCHOOL OF BUSINESS
SPRING, 2015
FINANCE 351: PRINCIPLES OF INVESTMENT
MONDAY, 6:10 9:00PM
Professor Peter M. Sperling
E-mail: [email protected]
Office Hours: M/W, 10-10:30 AM, Room W483, or by appointment
Course Description: Inve
FIN351
Prof. Sperling
HW CH13 #4, #5
#4. Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at
20% for two years and then at 4% thereafter. If the required return for Deployment Specialists is
8.5%, what is the intrinsic
FIN351
Prof. Sperling
HW CH6 #14
#14. Suppose that many stocks are traded in the market and that it is possible to
borrow at the risk-free rate, rf. The characteristics of two of the stocks are as
follows:
Stock
ExpectedReturn
StandardDeviation
A
8%
40%
B
FIN351
Prof. Sperling
HW CH7 #4, #9
#4. What are some differences between a unit investment trust and a closed-end fund?
(LO 4-2)
#9. What are some comparative advantages of investing your assets in the following: (LO 4-2) a.
Unit investment trusts.
b. Op
FIN351
Prof. Sperling
HW CH10 #5, #9, #20
#5 .A zero-coupon bond with face value $1,000 and maturity of five years sells for $746.22.
What is its yield to maturity? What will happen to its yield to maturity if its price falls
immediately to $730? (LO 10-2
FIN351
Prof. Sperling
HW CH11 #12.#15(a,b)
#12. You own a fixed-income asset with a duration of five years. If the level of interest rates,
which is currently 8%, goes down by 10 basis points, how much do you expect the price of the
asset to go up (in per