Finance 355: Investments
Fall 2015
Instructor: Shuming Liu
QUIZ 1
1
c
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
d
c
16
d
12
e
17
c
c
13
d
18
a
9
b
14
c
19
e
10
b
15
d
20
d
b
16
c
1
d
6
QUIZ PAPER B
11
c
2
c
7
e
12
b
17
d
3
a
8
d
13
c
18
c
4
e
9
c
14
b
19
c
Finance 355: Investments
Fall 2015
Instructor: Shuming Liu
QUIZ 2
QUIZ PAPER A
1
b
6
c
11
e
16
d
2
d
7
e
12
b
17
b
3
b
8
e
13
d
18
b
4
d
9
e
14
b
19
e
5
c
10
b
15
c
20
d
QUIZ PAPER B
1
e
6
b
11
d
16
c
2
b
7
d
12
b
17
e
3
d
8
b
13
b
18
e
4
b
9
d
14
e
19
e
SAN FRANCISCO STATE UNIVERSITY
COLLEGE OF BUSINESS
FIN 355-1: Investments
Fall 2010
INSTRUCTOR: Shuming Liu
OFFICE: SCI 330
PHONE: 338-6289
EMAIL: shuming@sfsu.edu
OFFICE HOURS: T 9am 11am, 3:30pm 4:30pm TH 10am 11am
Classroom: BUS 213 Meeting Time: TTH 1
SAN FRANCISCO STATE UNIVERSITY
COLLEGE OF BUSINESS
FIN 355-2: Investments
Fall 2011
INSTRUCTOR: Shuming Liu
OFFICE: SCI 330
PHONE: 338-6289
EMAIL: shuming@sfsu.edu
OFFICE HOURS: TTH 9am 9:25am, 3:25pm 5:00pm
Classroom: BUS 213 Meeting Time: TTH 2:10pm 3:2
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 6
Chapter 10 Question 19
LKD Co. has 10 percent coupon bonds with a YTM of 8.6 percent. The current yield on these
bonds is 9.2 percent. How many years do these bonds have left until they
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 1
Chapter 2 Question 22
Youve just opened a margin account with $11,000 at your local brokerage firm. You instruct
your broker to purchase 600 shares of Landon Golf stock, which currently
Finance 355: Investments
Fall 2013
Instructor: Shuming Liu
QUIZ 1
a
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
b
16
d
12
e
17
c
e
13
d
18
b
9
b
14
e
19
e
a
10
b
15
d
20
d
1
d
6
QUIZ PAPER B
11
b
b
16
a
2
c
7
e
12
b
17
d
3
b
8
d
13
e
18
c
4
e
9
e
14
b
19
c
5
Finance 355: Investments
Sample Quiz 2
1.
The rate that banks charge each other for overnight loans of $1 million or more is called the
_ rate.
a. institutional
b. financial overnight
c. Federal funds
d. monetary
e. daily
Answer: c.
2.
The Whirlwind Co. j
Finance 355: Investments
Sample Quiz 2
1.
The rate that banks charge each other for overnight loans of $1 million or more is called the
_ rate.
a. institutional
b. financial overnight
c. Federal funds
d. monetary
e. daily
2.
The Whirlwind Co. just paid an
Finance 355: Investments
Fall 2011
Shuming Liu
QUIZ 3
QUIZ PAPER A
1
b
6
d
11
c
16
c
2
d
7
a
12
d
17
a
3
c
8
c
13
b
18
e
4
b
9
e
14
a
19
c
5
a
10
d
15
e
20
d
QUIZ PAPER B
1
d
6
b
11
c
16
c
2
a
7
d
12
a
17
d
3
c
8
c
13
e
18
b
4
e
9
b
14
c
19
a
5
d
10
a
15
Finance 355: Investments
Sample Quiz 1
1.
A stock sold for $38.20 at the beginning of the year. The end of year stock price was $40.11.
What was the amount of the annual dividend if the total return for the year was 9.712
percent?
a. $1.50
b. $1.54
c. $1.
Finance 355: Investments
Fall 2011
Instructor: Shuming Liu
QUIZ 2
QUIZ PAPER A
1
c
6
c
11
a
16
b
2
d
7
e
12
b
17
b
3
d
8
e
13
c
18
b
4
d
9
e
14
b
19
b
5
d
10
b
15
c
20
d
QUIZ PAPER B
1
a
6
c
11
b
16
c
2
b
7
d
12
b
17
e
3
c
8
d
13
b
18
e
4
b
9
d
14
b
19
e
Finance 355: Investments
Sample Quiz 1
1.
A stock sold for $38.20 at the beginning of the year. The end of year stock price was $40.11.
What was the amount of the annual dividend if the total return for the year was 9.712
percent?
a. $1.50
b. $1.54
c. $1.
Finance 355: Investments
Fall 2011
Instructor: Shuming Liu
QUIZ 1
1
a
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
c
b
16
d
12
e
17
c
a
13
d
18
c
9
b
14
e
19
c
10
b
15
d
20
d
b
16
a
1
d
6
QUIZ PAPER B
11
b
2
c
7
e
12
b
17
d
3
c
8
d
13
a
18
c
4
c
9
e
14
b
19
c
Finance 355: Investments
Sample Quiz 3
1.
There is a 20 percent probability that a particular stock will earn an 18 percent return
and an 80 percent probability that it will earn 13 percent. What is the risk premium
on this stock if the risk-free rate is
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 7
Chapter 11
The following portfolio has 50% in stock A and 25% in each of stock B and C. What is the
portfolio expected return and portfolio variance and standard deviation?
State of
Econ
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 7
The risk-free rate is 5.4 percent and the expected return on the market is 11.2 percent. Stock A
has a beta of 1.3. For a given year, stock A returned 14.8 percent while the market retur
Chapter
10
McGrawHill/Irwin
Bond Prices and Yields
Learning Objectives
In this chapter, you will learn:
1.
2.
3.
4.
How to calculate bond prices and yields.
The importance of yield to maturity.
Interest rate risk.
How to measure the impact of interest rat
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 4
Chapter 9 Question 11
A Treasury bill with 64 days to maturity is quoted at 99.012. What is the bank discount yield,
the bond equivalent yield, and the effective annual return?
ANSWER:
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Chapter
13
McGrawHill/Irwin
Performance Evaluation
and Risk Management
Learning Objectives
To get a high evaluation of your investments
performance, make sure you know:
1. How to calculate the three best-known portfolio evaluation
measures.
2. The strengt
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Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 7
The following portfolio has 50% in stock A and 25% in each of stock B and C. What is the
portfolio expected return and portfolio variance and standard deviation?
State of
Economy
Probabi
Chapter
12
McGrawHill/Irwin
Return, Risk, and the
Security Market Line
Learning Objectives
Studying some topics will yield an expected
reward. For example, make sure you know:
1. The difference between expected and unexpected
returns.
2. The difference be
Chapter
11
McGrawHill/Irwin
Diversification and
Risky Asset Allocation
Learning Objectives
To get the most out of this chapter,
spread your study time across:
1. How to calculate expected returns and variances
for a security.
2. How to calculate expected
Chapter
15
McGrawHill/Irwin
Stock Options
Learning Objectives
Give yourself some in-the-money academic
and professional options by understanding:
1. The basics of option contracts and how to obtain
price quotes.
2. The difference between option payoffs an
Chapter
14
McGrawHill/Irwin
Futures Contracts
Learning Objectives
You will derive many future benefits if you
have a good understanding of:
1. The basics of futures markets and how to obtain price quotes for
futures contracts.
2. The risks involved in fut
August/21/2016 FIN 355 Shengle Lin
Fall 2016 Preliminary Syllabus
FIN 355 - Investment
San Francisco State University
Dr. Shengle Lin
Office Hours 1: Monday 67 PM
Email: slin.sfsu@gmail.com
Office Hours 2: Wed 14PM
Office: BUS 306
Course Objective: This c
Self Review Practice 3
1.
Which one of the following is the best definition of a money market instrument?
A. corporate debt that matures in 90 days
or less
B. bank savings
account
C. investment issued by a financial institution that matures in 30
days or
CH 1
1. Suppose you bought 500 shares of a stock at an initial price of $15 per share. Four
months later, the stock price was $18. Suppose you did not receive dividends.
(a) What is your holding period return? 20%
(b) What is your effective annual return?
Chapter 1. Self Review Practice Questions with Solutions
1.
The risk-free rate is:
A. another term for the dividend
yield.
B. defined as the increase in the value of a share of stock
over time.
C. the rate of return earned on an investment in a firm that
1.
Market timing is the:
A. placing of an order within the last half-hour of trading
for a day.
B. period of time between the placement of a short sale and the covering
of that sale.
C. buying and selling of securities in anticipation of the overall direc