= Tutorial 9 (Topic 8) =
Learning Outcome: Discuss P/E multiple
Can the growth prospects of a company affect its price/earnings multiple? Explain. How
about the amount of debt a firm uses? Are there any other variables that affect the level
of a firms
= Tutorial 3 (Topic 2) =
Learning Outcome: Differentiate different securities markets
Differentiate between each of the following pairs of terms
a) Money market and capital market
- Short-term securities such as CDs, T-bills, and bankers accep
= Tutorial 8 (Topic 7) =
Learning Outcome: Explain the investment appeal of common stocks
What is a common stock? What is meant by the statement that holders of
common stock are the residual owners of the firm?
- A common stock is an equity in
= Tutorial 5 (Topic 4) =
Learning Outcome: Discuss the concepts of correlation and diversification
What is correlation, and why is it important with respect to asset returns?
- Correlation refers to the statistical measure of the relationship, if any,
= Tutorial 2 (Topic 1) =
Learning Outcome: Explain the meaning of investment
Define the term investment, and explain why individuals invest.
- An investment is any asset into which funds can be placed with the expectation of
preserving or incr
= Tutorial 4 (Topic 3) =
Learning Outcome: Review the concept of return and its components.
Explain what is meant by the return on an investment. Differentiate between the two
components of return current income and capital gains (or losses).
- The re
= Tutorial 6 (Topic 5) =
Learning Outcome: Describe the basic features of mutual funds
What is a mutual fund? Discuss the mutual fund concept, including the
importance of diversification and professional management.
- A mutual fund invests in a di
= Tutorial 7 (Topic 6) =
Learning Outcome: Explain what is asset allocation
What is asset allocation? How does it differ from diversification? What role does
asset allocation play in constructing an investment portfolio?
- An asset allocation sche