FINANCIAL ECONOMICS
[PROBLEM SET NO. 3]
Optimal Risky Portfolios
Multiple Choice Questions
1. Market risk is also referred to as
A. systematic risk, diversifiable risk.
B. systematic risk, nondiversifiable risk.
C. unique risk, nondiversifiable risk.
D. u
FINANCIAL ECONOMICS
[SOLUTION PROBLEM SET3]
Optimal Risky Portfolios
Multiple Choice Questions
1. Market risk is also referred to as
A. systematic risk, diversifiable risk.
B. systematic risk, nondiversifiable risk.
C. unique risk, nondiversifiable risk.
FINANCIAL ECONOMICS
[PROBLEM SET NO. 2]
DEADLINE 23/02/91
1. Consider the stock return information provide below for two mutual funds. Use this
information to answer the questions below:
a) Calculate the mean return for each of the funds across the five y
Chapter 1 - Investments: Background and Issues
Investment vs. investments
Real assets vs. financial assets
Financial markets and the economy
Investment process
Competitive markets
Players in investment markets
Recent trends
Investments as a profession
Inv
Investment Analysis
Finance 390:380:02
Fall Semester 2012
When: Monday and Thursday 10:20-11:40am
Where: Beck Hall Room 213
Steve Ball
917-689-7936
Rutgers Email: [email protected]
Office Hours: When & Where TBD
Text Book: Investments 9th Edition Bo
CHAPTER 01
INVESTMENTS: BACKGROUND AND ISSUES
1. Equity is a lower priority claim and represents an ownership share in a corporation,
whereas debt has a higher priority claim, but does not have an ownership interest. Debt
also pays a specified cash flow o
Chapter 09 - The Capital Asset Pricing Model
Chapter 09
The Capital Asset Pricing Model
Multiple Choice Questions
1. In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk
is
A. unique risk.
B. beta.
C. standard deviation of
Bond Prices and Yields
Multiple Choice Questions
1. The current yield on a bond is equal to _.
A. annual interest divided by the current market price
B. the yield to maturity
C. annual interest divided by the par value
D. the internal rate of return
E. no
Chapter 2 - Asset Classes and Financial Instruments
CHAPTER 2: ASSET CLASSES AND FINANCIAL
INSTRUMENTS
PROBLEM SETS
1.
Preferred stock is like long-term debt in that it typically promises a fixed payment
each year. In this way, it is a perpetuity. Preferr
Chapter 1 The Investment Environment
Multiple Choice Questions
1. In 2005, _ was the most significant real asset of U. S. nonfinancial
businesses in terms of total value.
A) equipment and software
B) inventory
C) real estate
D) trade credit
E) marketable
Test #1 100 Points (Version #1)
390:380:02
Investment Analysis
M-Th 10:20-11:40 Beck 213
[email protected]
There are 30 multiple choice questions worth 2.5 points each and one situational problem
with 10 questions worth 2.5 points each.
Please read
cha11
Student: _
1.
If you believe in the _ form of the EMH, you believe that stock prices reflect all relevant
information including historical stock prices and current public information about the firm, but not
information that is available only to insi
ch18
Student: _
1.
_ is equal to the total market value of the firm's common stock divided by (the replacement cost of
the firm's assets less liabilities).
A. Book value per share
B. Liquidation value per share
C. Market value per share
D. Tobin's Q
E. No
Oil and Gas Homework Problem
390:380:02
Investment Analysis
M-Th 10:20-11:40 Beck 213
[email protected]
You work for Glencore, a huge commodity trading and operating company that has
projects all over the globe. You are asked to analyze the followin
CHAPTER 11: THE EFFICIENT MARKET HYPOTHESIS
CHAPTER 11: THE EFFICIENT MARKET HYPOTHESIS
PROBLEM SETS
1.
The correlation coefficient between stock returns for two non-overlapping periods
should be zero. If not, one could use returns from one period to pred
CHAPTER 18: EQUITY VALUATION MODELS
CHAPTER 18: EQUITY VALUATION MODELS
PROBLEM SETS
1.
Theoretically, dividend discount models can be used to value the stock of
rapidly growing companies that do not currently pay dividends; in this scenario,
we would be
Week #5 10/8/12
390:380:02
Investment Analysis
M-Th 10:20-11:40 Beck 213
[email protected]
Alternative Investments
Commercial Real Estate
What assets are considered CRE (Commercial Real Estate)
Office Brookfield
Retail (Malls,strip centers) Simon
In
Commercial Real Estate Homework Problem
390:380:02
Investment Analysis
M-Th 10:20-11:40 Beck 213
[email protected]
You work as an analyst for a real estate development firm who is looking at acquiring a
multifamily (apartment building) asset in New
Hedge Fund Homework Problem
390:380:02
Investment Analysis
M-Th 10:20-11:40 Beck 213
[email protected]
You work directly for Stevie Cohen (google him) and youre convinced that the recent
government bonds just issued by Greece are EXTEMELY cheap. You
Econ435 Financial Markets and the Macroeconomy Fall 2005 Midterm
The exam consists of 40 multiple choice questions and one essay question. Please answer ALL of them. The duration of the exam is 1 hr 30 mins. DO NOT OPEN the exams until you are told to do
Answer Key
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. A E A B C A C D E C C D C B C D B B C D D B B C C C B D A A C C D B B D D B B B
Page 1
Questi
Econ435 Financial Markets and the Macroeconomy Fall 2005 Final Exam
The exam consists of 60 multiple choice questions and one essay question. Please answer ALL of them. The duration of the exam is 2 hrs. DO NOT OPEN the exams until you are told to do so a
Module 7
Asset pricing models
Prepared by Pamela Peterson Drake, Ph.D., CFA
1.
Overview
Asset pricing models are different ways of interpreting how investors value investments. Most
models are based on the idea that investors hold well-diversified portfol
Chapter 09 - The Capital Asset Pricing Model
CHAPTER 9: THE CAPITAL ASSET PRICING MODEL
PROBLEM SETS 1. E(rP) = rf + P [E(rM ) rf ] 18 = 6 + P(14 6) P = 12/8 = 1.5 2. If the securitys correlation coefficient with the market portfolio doubles (with all oth
CHAPTER 10: ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS OF RISK AND RETURN
CHAPTER 10: ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS OF
RISK AND RETURN
PROBLEM SETS
1.
The revised estimate of the expected rate of return on the stock would be the old
CHAPTER 10: ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS OF RISK AND
RETURN
CHAPTER 10: ARBITRAGE PRICING THEORY AND
MULTIFACTOR MODELS OF RISK AND RETURN
PROBLEM SETS
1.
The revised estimate of the expected rate of return on the stock would be the old
Index Models
Chapter 10
The Need for a Simpler Model
the input list (i.e., list of assets on the market) in the Markovitz portfolio selection model is very important, determining the accuracy of finding efficient portfolios however, it involves a lot of c
Chapter 10 - Practice Questions 1. Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the of your portfolio was 0.20 and M was 0.16, the of the portfolio would be approximately _
Finance 602 Notes:
January 24, 2017:
Need to look at PE ratio when evaluation shares. Share might cost a lot, but you are buying big
package
January 31, 2017:
Rule of 72: 72/interest rate will tell you approximately how long it will take you to double you
Tax Rat
Data
Sum - Calculated Tax Rate % - 2012
Sum - Calculated Tax Rate % - 2013
Sum - Calculated Tax Rate % - 2014
Sum - Calculated Tax Rate % - 2015
Sum - Calculated Tax Rate % - 2016
Company Name
Johnson & Johnson
Peer Average
23.67
10.6
20.62
19.73
1.
What is operating leverage, and how does it affect a firm's business risk? Show the operating break-even point if a
company has fixed costs of $700, a sales price of $15, and variables costs of $10.
Operating leverage is the change in EBIT caused by
nT
Corporate Finance
R. Moy
Spring 2017
The objective of this exercise is to allow you to use the tools we have learned from our
textbook, and apply them to actual companies. You should discover that each industry is
quite unique in regards to their financia