Chapter 07 - Optimal Risky Portfolios
Chapter 07
Optimal Risky Portfolios
Multiple Choice Questions
1. Market risk is also referred to as
A. systematic risk, diversifiable risk.
B. systematic risk, nondiversifiable risk.
C. unique risk, nondiversifiable r

FNCE 4820 Fall 2015
David M. Gross Ph.D.
Bond Duration, Convexity and Estimated Price Change - Due Friday September 25 before Midnight
This is individual work. You may not work with other students. You may only work alone.
The goal of this assignment is t

Chapter 08 - Index Models
Chapter 08
Index Models
Multiple Choice Questions
1. As diversification increases, the total variance of a portfolio approaches _.
A. 0
B. 1
C. the variance of the market portfolio
D. infinity
E. 1
2. As diversification increases

Chapter 22 - Futures Markets
Chapter 22
Futures Markets
Multiple Choice Questions
1. A futures contract
A. is an agreement to buy or sell a specified amount of an asset at the spot price on the
expiration date of the contract.
B. is an agreement to buy or

Chapter 17 - Macroeconomic and Industry Analysis
Chapter 17
Macroeconomic and Industry Analysis
Multiple Choice Questions
1. A top down analysis of a firm starts with _.
A. the relative value of the firm
B. the absolute value of the firm
C. the domestic e

Chapter 14 - Bond Prices and Yields
Chapter 14
Bond Prices and Yields
Multiple Choice Questions
1. The current yield on a bond is equal to _.
A. annual interest payment divided by the current market price
B. the yield to maturity
C. annual interest divide

Chapter 17 - Macroeconomic and Industry Analysis
Chapter 17
Macroeconomic and Industry Analysis
Multiple Choice Questions
1. A top down analysis of a firm starts with _.
A. the relative value of the firm
B. the absolute value of the firm
C. the domestic e

Chapter 26 - Hedge Funds
Chapter 26
Hedge Funds
Multiple Choice Questions
1. _ are the dominant form of investing in securities markets for most individuals but
_ have enjoyed a far greater growth rate in the last decade.
A. Hedge funds; hedge funds
B. Mu

Georgian American University
Business Modeling
Final Exam 1
Name _
1. The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical
components. Management wants to determine how many units of each

Chapter 10 - Arbitrage Pricing Theory and Multifactor Models of Risk and Return
Chapter 10
Arbitrage Pricing Theory and Multifactor Models of Risk and Return
Multiple Choice Questions
1. _ a relationship between expected return and risk.
A. APT stipulates

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 7
Part III. Return Analysis
Potential Sources of Dollar Return
To make an intelligent decision about the attractiveness of a bond, an investor must be
able to measure the

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 8
Part III. Return Analysis
Total Return
In the previous chapter, we explained the three potential sources of dollar return from
investing in a bond. We also demonstrated

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 9
Part III. Return Analysis
Measuring Historical Performance
In the previous two chapters we looked at the potential dollar sources of return from
investing and the poten

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 3
Part I. TIME VALUE OF MONEY
Yield (Internal Rate of Return)
In the previous chapter we showed how to use present value to determine whether a
nancial instrument provide

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 1
Part I. TIME VALUE OF MONEY
Future Value
The notion that money has a time value is one of the most basic concepts in nancial
analysis. Money has a time value because of

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 4
Part II. BOND PRICING FOR OPTION-FREE
BONDS AND CONVENTIONAL YIELD
MEASURES
The Price of a Bond
In Chapter 4 we explained that the price of any nancial instrument is eq

Customer Name
Kelli L Xu
Donald Chandra
Dale Shen
Preston Rodriguez
Christian A Thomas
Jose J Hall
Darrell Goel
Nicole J Williams
Erick E Gonzalez
Olivia K Cox
Marissa Price
Tyler C Lewis
Carrie D Ruiz
Gary G Serrano
Gerald Alonso
Kenneth Raje
Levi J Suri

Davis Instruments has two manufacturing plants located in Atlanta, Georgia. Product demand varies
considerably from month to month, causing Davis extreme difficulty in workforce scheduling. Recently
Davis started hiring temporary workers supplied by WorkF

1. The Swelte Glove Company manufactures and sells two products. The company makes a profit of $12 for each
unit of product 1 sold and a profit of $4 for each unit of product 2. The labor-hour requirements for the products in
each of the three production

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 2
Part I. TIME VALUE OF MONEY
Present Value
In the previous chapter, we illustrated how to compute the future value of an investment.
In this chapter, we show how to work

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 6
Part II. Bond Pricing for Option-Free Bonds and
Conventional Yield Measures
The Yield Curve, Spot Rate Curve, and
Forward Rates
Up to this point, we know the basic prin

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 5
Part II. Bond Pricing for Option-Free Bonds and
Conventional Yield Measures
Conventional Yield and Spread Measures for Bonds
In the previous chapter, we explained how t

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 20
Part VII. Analyzing Securitized Products
Cash Flow Characteristics of Amortizing Loans
A loan that includes scheduled principal payments as part of the loan payment is

GAU
Business School
Fixed Income Mathematics
Lecturer: Prof. T. Toronjadze
Class No. 18
Part VII. Analyzing Securitized Products
APPENDIX A
Description of Pool of Assets for
CSFB Manufactured Housing
Pass-Through Certicates, Series
2002-MH3 at The Cut-O D

Chapter 2 - Pricing of Bonds
3. Answer the below questions.
Bonus Questions: For parts (a) and (b) compute the Wealth Index, HPR, Annual HPR,
Geometric Mean Return and for part (b) the EAR.
(a) The portfolio manager of a tax-exempt fund is considering inv

Chapter 3 Measuring Yield
2. What is the effective annual yield (EAY) if the semiannual periodic interest rate is 4.3%?
Periodic rate = r = 4.30%
m=2
EAY = (1 + r)m 1 = (1.0430)2 1 = 8.7849%
3. What is the yield to maturity of a bond?
The YTM is the disco

FNCE 4820 Fall 2015
David M. Gross Ph.D.
Bond Price, Yield and Total Return Calculations - Due Friday September 18 before Midnight
This is individual work. You may not work with other students. You may only work alone.
The goal of this assignment is to us

Chapter 4 Bond Price Volatility
1. The price value of a basis point will be the same regardless if the yield is increased or decreased
by 1 basis point. However, the price value of 100 basis points (i.e., the change in price for a 100basis-point change in

Dual Career Guide to
Informational
Interviewing
What is informational interviewing?
Informational interviewing is an often-used
term that can be confusing because it doesnt
represent the activity very welllargely
because its so different from interviewing