Investments: Assessment Test
Problem 1: (50%)
A company has a profit function as follows:
where x is the number of units made and sold and P is the profit in dollars, and 0<x<5.
a) How many units should be made and sold to maximize the profit?
b) What is

Investments
Topic 3:
Return and Risk: Single Asset
George Ye
1
Outline
1.
2.
3.
4.
5.
Interest rate
Risk and risk premium
Estimating expected return and risk
The historical record
Distribution of return: The Normal
Distribution?
2
1. Interest Rates
Nomina

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FINA4466-B: Investments: QUIZ 1
Multiple Choice: (5 questions):
1. Which of the following indices is (are) market-value weighted?
I) The S&P/TSX Composite Index.
II) The Standard and Poor's Composite 500-Stock Index Response
III) The Dow Jones I

Investments
Topic 2:
Stock Trading
George Ye
Outline
1.
2.
3.
4.
Primary & Secondary markets
Trading orders
Trading costs
Margin trading
2
Structure of Financial Markets
Term:
Money market: less than one year
Capital market over a year
Types of instrument

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FINA4466-A: Investments: QUIZ 1
Multiple Choice: (5 questions):
1. Investment bankers
A) act as intermediaries between issuers of stocks and investors.
B) act as advisors to companies in helping them analyze their financial needs and find buyers

FINA4466 2015-16 F: Practice Questions 2
Textbook:
Ch 3: 2,3,4,7,8,11,12,13,14,16,17,18,19,21,22
Solution:
Ch. 3
2. a.
In principle, potential losses are unbounded, growing directly with increases in the price
of Alcan.
b.
If the stop-buy order can be fil

Investments
Topic 1:
Financial Instruments
George Ye
1
Outline
1.
2.
3.
4.
Financial instruments
Indexes
Investment funds
Derivatives
2
What is investments?
To make this tradeoff of present consumption for
a higher level of future consumption is
investmen