Suggestions
From the above analysis, we can conclude that GOME has serious problems in corporate
governance structure. In order to promote the healthy development of the enterprises, we
put forward the following policy suggestions/changes?:
1. Constrain t
a) Can Ryan Air make money on the I98 fare they propose? Provide a quantitative
analysis.
Ryan Air can make money on the I98 fare they propose.
By applying the figure in Exhibit 4, we know that the typical cost of a Dublin-London
round trip is I155.1 for
Suggestions
From the above analysis, we can conclude that GOME has serious problems in corporate
governance structure. In order to promote the healthy development of the enterprises, we
put forward the following policy suggestions/changes?:
1. Constrain t
AF436
Accounting
for
Management
Control
As indicated in the course outline, you will need to submit three pieces of assigned
coursework
for
assessment.
Each
of
these
will
contribute
16.7%
towards
your
final
mark.
Each will consist of a case study, about w
Chapter 009 Accounting for Receivables
Summary of Questions by Difficulty Level (DL) and Learning Objective (LO)
True/False
Item
DL
LO
Item
DL
LO
Item
DL
LO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Easy
Easy
Med
Med
Med
Med
Hard
Appendix B Time Value of Money
Summary of Questions by Difficulty Level (DL) and Learning Objective (LO)
True/False
Item
1.
2.
3.
4.
5.
6. *
7.
DL
LO
Easy
Easy
Easy
Med
Easy
Easy
Med
C1
C1
C1
C1
P1
P1
P1
Item
8.
9. *
10. *
11.
12.
13. *
14. *
DL
LO
Med
Me
if
C H A PT E R 1 The Investment Environment 29
P A R T 1 Introduction
ing the value of the security Passive ' '
- Investment strata ies ) i ' ~ '
mm.kcts_ g may make sense in neain efuent F
n emerging economies reduced interest rates during
As a policy r
90 PART l Introduction
seller does not own. The short-seller bor
cover the short position at any time
by the broker, and the broker usu~
ve as margin (collateral).
practice of selling securities that the
d through a broker and may be required to
ds of a s
CHAPTER 5: INTRODUCTION TO RISK, RETURN, AND
THE HISTORICAL RECORD
CHAPTER 5: INTRODUCTION TO RISK, RETURN, AND
THE HISTORICAL RECORD
PROBLEM SETS
1.
The Fisher equation predicts that the nominal rate will equal the equilibrium
real rate plus the expected
CHAPT i
E R 4 Mutual funds and Other Investment CoiiipaiiiEs 117
P ART l introduction
funds are assessed '
. . . marr- . . . -
of return Funds also Bhflgfament toes and incur other expenses, which reduce the investor
_ - . inmate some of the individuals c
C H A PT E R 7 Optimal Risky Portfolios 233
232 PART ll Portfolio Theory and Practice
9, Diversication is ba - - .
exposure to any one ZEOXEE oi aft-uteri portfolio across several assets, limitinc the
ing the tow amounts invested dag nor gezdditional risk
Portfolio Theory and Practice
30 PART I l
which implies a coefficient of risk aversion of
.079
A i 2 : 2.15
.85 X .208
ave assumed that the average
is highly speculative. We h
of return and standard devia
investor holds the naive view that historical a
' A T I I Portfolio Theory and Practice
i2 P R . C H A PTE R 5 Introduction to Risk. Return, and the Historic, Record
a weighted average of the arithmetic and geometric historical averages.13 The proper weight 163
applied to the geometric average e
7*
282 PART II
Summary
CHAPTER 8
Portfolio Theory and Practice
*5, thiinollacus'efportfolios constructed from the index model include analyzed securities in ID or
t10I1.(J err 1|: otmation ratios. The full risky portfolio is a mixture of the active portfo
PART lll Equilibrium in Capital Markets
320
lower expected returns. Conversely, if returns vary positively with liquidity, then liquidity Simple version of the
risk is magnified and prices Wlll be lower. In fact, we Wlll see in Chapter 13 that firms wit
Portfolio Theory
Jinghan Meng
Roadmap for Today
1.
2.
3.
4.
Chapter 5.1-5.3: Interest Rates and Inflation
Chapter 5.4: Risk and Returns Scenario Analysis
Chapter 5.5-5.8: Risk and Returns Time Series Analysis
Chapter 6.1: Risk Aversion and Utility Functio
Single Index Model and CAPM
Jinghan Meng
Roadmap for Today
1.
2.
3.
Chapter 8.3: Statistical Analysis of Single-Index Model
Chapter 8.4 8.5: Portfolio Construction Using Single-Index
Model
Chapter 9.1: Capital Asset Pricing Model
2
Statistical Analysis of
Basic Knowledge in Financial Market
Jinghan Meng
Roadmap for Today
1.
2.
Chapter 3: How Securities are Traded
Chapter 4: Investment Companies
2
Chapter 3: How Securities are Traded
How Firms Issue Securities
Primary Market:
Firms issue new securities th
Types of Orders
v Market Order:
Executed immediately
Trader receives current market price
A large order may be lled at
mul<ple prices
v Price-con6ngent Order:
Traders specify buying or selling price
Limit order