Problem Set 1, Due January 28
FI 312, Spring 2016
Prof. Sophia Zhengzi Li
Properties of Random Variables
The mean or expected value of an random variable X is the weighted average of all
possible outcomes, where the weights P
are the probabilities of tho
Exam 1, February 11
FI 312, Spring 2016
Prof. Sophia Zhengzi Li
1. (5 points) Based on Modern Portfolio theory, do you agree with the following statements? Explain your answer in detail.
- If you are young you should be putting your money into a couple of
Problem Set 4, Due March 24
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
1. Here are data on two companies. The T-bill rate is 3% and the market expected return
is 10%.
Company
$1 Discount Store
Forecasted Return
12%
Standard Deviation of Returns
8%
Beta
1
Formulas for Exam 2, FI 312, Spring 2015
The mean or expected value of an random variable X is the weighted average of all possible outcomes, where the weights are the probabilities of those outcomes:
n
= E(X) = x1 P r(x1 ) + . + xn P r(xn ) =
xi P r(xi
Exam 1, February 12
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
1. (20 points) What are the expected return and the standard deviation of a lottery L with
the following probability distribution:
Value of L
10
50
100
Probability
0.5
0.4
0.1
Solution: E(L)
Exam 2, March 26th
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
1. (5 points) What is Risk Parity?
Solution: Risk Parity allocates the portfolio according to equal risk shares.
2. (10 points) What are the benets of adopting the Top Down Approach? Can you l
Chapter 5
1. The _ average ignores compounding. A) geometric B) arithmetic C) both a and b above D) none of the above
2. The complete portfolio refers to the investment in _. A) the risk-free asset B) the risky portfolio C) the sum of a and b D) the
Problem Set 1, Due January 27
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
Properties of Random Variables
The mean or expected value of an random variable X is the weighted average of all
possible outcomes, where the weights are the probabilities of those
Problem Set 1, Due January 27
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
Properties of Random Variables
The mean or expected value of an random variable X is the weighted average of all
possible outcomes, where the weights are the probabilities of those
FI312 Introduction to Investments
Chapter 10 Problems and Solutions
1. 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
imme
Problem Set 5, Due April 14
FI 312, Spring 2015
Prof. Sophia Zhengzi Li
1. Jerey Bruner, CFA, uses the capital asset pricing model (CAPM) to help identify
mispriced securities. A consultant suggests Bruner use arbitrage pricing theory (APT)
instead. In co
IMCCommunicationTools
IMC Communication Tools
Advertising
Sales
Promotion
Direct
Marketin
g
Publicity/Public
Relations
Interactive/
Internet Marketing
Personal
Selling
Advertising
Any paid form of nonpersonal communication
Any paid form of nonpersonal com
Chapter 5
Questions and Problems
1. Simple Interest versus Compound Interest
Bandung Bank pays 7 percent simple interest on
its savings account balances, whereas Surabaya
Bank pays 7 percent interest compounded annu
ally. If you made a 20,000 baht depos
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Lecture Notes 40-48
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Chapter 6 Interest Rates and Bond Valuation
Definition and Description of Bonds
Long-term debt-loosely, bonds with a maturity of one year or more
Short-term debt-less than a year to maturity, also called unfunded debt
Bond-strictly speaking, secured debt;
Time Value of Money
Compounding The process of determining the value of a cash flow or series of cash
flows at some point in the future when compound interest is applied.
Discounting The process of finding the present value of a cash flow or series of cas
Differences Between Group Means
(Click icon for audio)
Dr. Michael R. Hyman, NMSU
Differences between Groups when Comparing Means
Interval or ratio scaled variables t-test
When groups are small When population standard deviation is unknown
z-test
When
News
Corporation
By
Team Vivaldi
Spring 2008
MGT 693
Class 18571
Professor Degravel
Case Study
Presentation
1
News Corporation
Founded in a small Australian town in 1952
Impressive media and entertainment company
with broadest global presence
Major assets
Building Alliances
Firm A
Key Functional Areas
R&D
Marketing
Production
Logistics
Service
Transparency 9-1
Firm B
Cooperative Modes
Joint
Coordinated
Complementary
Independent
Structure and Control
Org. Structure
Centralization
Formalization
T
APUNTES SOBRE LA REALIZACION DEL FONEMA [B]
EN EL ESPAOL
LUBOMR
BARTO
El sistema fonolgico del espaol moderno cuenta con tres fonemas consonanticos de la serie bilabial [p], [b], [m] y un fonema de la serie labiodental [f]. 1
El fonema [p] en la realizaci
Statistics for Business and
Economics
Dr. TANG Yu
Department of Mathematics Soochow University May 28, 2007
Types of Correlation
Positive correlation Slope 1 is positive
Negative correlation Slope
No correlation Slope
1 is negtive
1 is zero
Hypo
CHAPTER 6
FINAL CONSUMERS AND THEIR BUYING BEHAVIOR
When You Finish This Chapter, You Should
1.
Describe how economic needs influence the buyer decision
process.
2.
Understand how psychological variables affect an individual's
buying behavior.
3.
Understa
Lecture 7
The Value of Common Stocks
Managerial Finance
FINA 6335
Ronald F. Singer
Topics Covered
How
To Value Common Stock
Capitalization Rates
Stock Prices and EPS
Cash Flows and the Value of a Business
4-2
Stocks & Stock Market
Common
Stock : Owne
BenefitCostAnalysis
Typically used for public projects
The goal is to determine if benefits
exceed costs:
Benefit / Cost Ratio > 1
The goal is NOT to maximize B/C Ratio.
Interest rates used are typically lower
than those used by businesses.
Typically
FI 312, Fall 2014 - Problem Set 4 Solution
1
Who should buy long term bonds?
(a) The net holding period return between t=0 and t=2:
if there was a boom, 1.042 1.06 1 = 10.5%.
If there was a recession, 1.042 1.02 1 = 6.3%.
(b) The net holding period return
Practice Problems
FI 312: Introduction to Investments
Return Basics
1. Suppose you have the following rates of return on a stock:
2000
-21%
2001
34%
2002
15%
2003
-3%
2004
8%
(1) If we reinvest any payoffs received, what is the holding period return from