To: Southwest Sports Group
From: Kevin Tjahaja and Kevin Gunawan
CC: David Carrithers
Subject: A-Rod: Signing the Best Player in Baseball
As an analyst, we would like to explain to you about the concept of this case. The
case is about signing Alex Rodrigu
Value Enhancement Plan
Value Enhancement Plan (A)
Ratish Mayank
1|
Value Enhancement Plan
Case Overview
Ford Motor Company was founded by Henry Ford and 11 investors in 1903.
By 1906 Henry Ford had acquired a majority position in the company's stock.
In 1
Notes 4B
Portfolio Theory II: Markowitz Diversification
and Optimal Risky Portfolio
Learning Objectives
Define nave diversification and Markowitz
(efficient/planned) diversification.
Compare and contrast the nave diversification and
efficient diversific
Notes 3B: Risk Aversion, Utility, and
Review of Portfolio Mathematics
Learning Objectives
II. Risk and Risk Aversion
Define risk aversion.
Calculate the risk premium of a risky investment.
Evaluate alternative investments using utility concept.
Define
Notes 3A
Return & Risk
A. Return Formulation and Measurement
B. Risk, Risk Premium, and Their Measurement
1
CFA Institutes Dynamic Framework
2
3A. Return Formulation and
Measurement
Learning Objectives
I. Formulation of Expected Return
Discuss how expecte
Notes 4A
Portfolio Theory I: Capital Allocation
Learning Objectives
Define capital allocation line (CAL).
Calculate the expected return and risk for a portfolio on the
CAL
Explain how the optimal mix of a risky and risk free asset is
determined for a r
Notes 1
The Process of Portfolio Management
Learning Objectives
Explain what portfolio management is.
Describe and explain the CFA Institutes dynamic portfolio
management process with an aid of a schematic diagram.
Explain the importance of the investment
Notes 2
Asset Allocation
Learning Objectives
Summarize the function of strategic asset allocation in
portfolio management.
Discuss the role of strategic asset allocation in relation
to exposures to systematic risk.
Formulate the major steps in asset alloc
Chapter 28 (BKM 10th ed) finc5120 for Notes 1
CFA PROBLEMS
1.
a.
(i) Return requirement: IPS Y has the appropriate language. Since the plan is
currently underfunded, the primary objective should be to make the pension fund
financially stronger. The risk i
Chapter 24 (BKM 10ed) for Finc 5120 for Notes 3A
1.
The dollar-weighted average will be the internal rate of return between the initial
and final value of the account, including additions and withdrawals. Using Excels
XIRR function, utilizing the given da
Chapter6CFAProblems#49
CFAPROBLEMS
4.
Indifference curve 2 because it is tangent to the CAL.
5.
Point E
6.
(0.6 $50,000) + [0.4 ($30,000)] $5,000 = $13,000
7.
(b) Higher borrowing rates will reduce the total return to the portfolio and this
results in a p
Seattle University
Albers School of Business and Economics
Review topics for FINC 5120 for the Mid-term exam
Winter 2017
Professor Jot Yau, CFA
Disclaimer
The following learning outcome statement list helps you focus your study efforts on the
important to
Chapter 2 - Asset Classes and Financial Instruments
CHAPTER 2: ASSET CLASSES AND FINANCIAL
INSTRUMENTS
Ch2: Q1113,
Ch2 : Q820 (required for Final Exam only)
PROBLEM SETS
11.
a.
At t = 0, the value of the index is: (90 + 50 + 100)/3 = 80
At t = 1, the va
CHAPTER 7: OPTIMAL RISKY PORTFOLIOS
CHAPTER 7: OPTIMAL RISKY PORTFOLIOS
Ch7: Q1-10, Q12-14, Q17-19
CFAQ4-9, Q12
PROBLEM SETS
1.
(a) and (e).
2.
(a) and (c). After real estate is added to the portfolio, there are four asset classes in
the portfolio: stock
Chapter 14 - Bond Prices and Yields
CHAPTER 14: BOND PRICES AND YIELDS
PROBLEM SETS
1.
c. Zero-coupon bondA bond that makes no coupon payments. Investors receive
par value at the maturity date but receive no interest payments until then. These
bonds are i
CHAPTER 18: EQUITY VALUATION MODELS
Ch18: Q1-Q4, Q10, Q12, Q14, Q 19
CFA Q3, Q5, Q6, and Q8
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 n
CHAPTER 24: PORTFOLIO PERFORMANCE EVALUATION
CHAPTER 24: PORTFOLIO PERFORMANCE EVALUATION
Ch24 (Part 1): Q2-6, CFA Q7-11
Ch24 (Part 2): Q7, 8 (not including a-ii),9, 12, 13, 15
CFAQ2, Q4-6, Q14
PROBLEM SETS
1.
As established in the following result from
CHAPTER 9: THE CAPITAL ASSET PRICING MODEL
CHAPTER 9: THE CAPITAL ASSET PRICING MODEL
Ch9: Q1, Q3-7, Q9-19;
CFA Q2-9, Q12
PROBLEM SETS
1.
E (rP ) rf P [ E ( rM ) rf ]
.18 .06 P [.14 .06] P
3.
a.
b.
c.
4.
.12
1.5
.08
False. = 0 implies E(r) = rf , not ze
CHAPTER 6: RISK AVERSION AND
CAPITAL ALLOCATION TO RISKY ASSETS
CHAPTER 6: RISK AVERSION AND
CAPITAL ALLOCATION TO RISKY ASSETS
Ch6: Q10, 13-15, 17, 18, 21, 22
Ch6 CFA Q4, 6
PROBLEM SETS
10.
The portfolio expected return and variance are computed as fol
CHAPTER 11: THE EFFICIENT MARKET HYPOTHESIS
Ch11: Q1-6, Q9, Q11-15, Q17, Q26-28;
CFA Q1-9
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
Chapter 15 - The Term Structure of Interest Rates
CHAPTER 15: THE TERM STRUCTURE OF INTEREST RATES
PROBLEM SETS.
2.
True. Under the expectations hypothesis, there are no risk premia built into bond
prices. The only reason for long-term yields to exceed sh
CHAPTER 3: HOW SECURITIES ARE TRADED
Ch3: Q6,7,912,16
CHAPTER3:HOWSECURITIESARETRADED
PROBLEM SETS
a. The stock is purchased for: 300 $40 = $12,000
6.
The amount borrowed is $4,000. Therefore, the investor put up equity, or
margin, of $8,000.
b. If the sh
Outstanding features:
Ownership by foreign investors:
One of the most prominent features in Vietnam stock markets is the rapid increase in the level of stock
ownership and trading volume by foreign investors over time, increasing from 17.5% in 2007 to ove
Percent of total (20132022) Note: For further
details and explanation, please refer to the section
How to Read the Country/Economy Profiles on
page 83. 2.1: Country/Economy Profiles 266 | The
Travel & Toursim Competitiveness Report 2013 Rank
Score (out of