BusM 410
#6
Name: Nguyen Thi-Tam Bui
7th in class
Section:3
HW
Due Mar
My current portfolio value is $3,034,760 with the total equity of $1,989,732.35 (initial equity
value is 2,000,000) and total margin of $1,045,027.65. This portfolio currently holds GS
BusM 410
#5
Name: Nguyen Thi-Tam Bui
23rd in class
Section:3
HW
Due Feb
CAPM and Single Factor Models
Background information for questions 1-3:
There are several assumptions that are used to derive the CAPM. As discussed in your textbook
the following ass
BusM 410
Name:
Section:
HW #2
Due Jan 19
Show your work.
1. The effective quarterly return is 4%. What is the effective 2-year return?
(1+ER3mo)8=(1+ER24mo)
(1.04)8=1+ ER24mo
ER24mo = 36.86%
2. The effective 2 year return is 12%. What is the effective ann
Example 1: Solving for FV
Present Value
$
Years
Annual Rate
Future Value
100
5
10%
$161.05
Example 1.1: Solving for PV
Future Value
$ 100,000
Years
18
Annual Rate
8%
Present Value
$25,024.90
Example 1.2: Solving for Nper
Present Value
1,250
Future Value
2
BusM 410
HW #1
Due Jan 10
As part of the class you will participate in a virtual stock trading project. This project will
encompass several of the homework assignments during the semester starting with HW #1. For
the project Ive created a trading game for
Mutual Funds
Marriott School of Management
Bus M 410
Winter 2011
Rob Schonlau
Last updated Feb 26, 2011
1
Lecture 12 Outline
l
l
Discuss types of investment companies.
Overview of mutual funds:
l
Formation information
Fees
How they are sold
Advantages and
Tests and evidence related to market
efficiency
Marriott School of Management
Bus M 410
Winter 2011
Rob Schonlau
Last updated Feb 21, 2011
1
Lecture 11 Outline
l
l
Discuss the efficient market hypothesis and the
random walk nature of price changes.
Discus
CAPM, ABT, Multi Factor Models,
and Market Efficiency
Marriott School of Management
Bus M 410
Winter 2011
Rob Schonlau
Last updated Feb 21, 2011
1
Lecture 10 Outline
l
l
Does the CAPM describe risk-return behavior in the
real world?
What alternatives exis
Single Factor Models and the CAPM
Marriott School of Management
Bus M 410
Winter 2011
Rob Schonlau
Last updated Feb 14, 2010
1
Lecture 9 Outline
l
l
l
l
Introduce single factor asset pricing models. Use
intuition developed from regression lecture (slide s
Risk, Return and the Capital
Allocation Line
Marriott School of Management
Bus M 410
Winter 2011
Rob Schonlau
Last updated Jan 12, 2011
1
Your friends temporarily entrusted $2 million to
you to invest. They asked you to invest it in the
best possible mann
Course Introduction and
Overview of Debt and Equity
Securities
Bus M 410
W inter 2011
Rob Schonlau
* I would like to thank Prof. Boyer for sharing his Bus M 410 materials. I
adapted many of his slides and spreadsheets for use in my class.
Last updated Dec