Portfolio Construction – top-down investment process – asset allocation and bench marking against an index Outline to be covered in your report for part 1 – asset allocation: Select and describe the index as the benchmark to be followed, with the focus on the sector weightings and the available investment universe . Some index-tracking in […]
Cost of Capital Answer the following questions in your own words: Why is the overall cost of capital used for investment decisions even when only one source of capital will be used ? In computing the cost of capital, are the historical costs of existing debt and equity or the current costs as determined in […]
Policies” Page: – 117 given in your textbook – “Principles of Macroeconomics”. A case study discusses the federal minimum-wage law. Questions: 1 Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply and-demand diagram of the market for unskilled labor, show the market wage, the number of […]
Risks and Returns. Use this section to analyze the risks and returns of different investment instruments in the U.S. and non-U.S. markets you selected. You may find it helpful to use online brokerage aids or other tools in conducting this analysis. Specifically, you should: A. Investment Instruments. Review stock, bond, mutual fund, and commodities performance […]
Financial Institutions and Markets: Discussion Board week 5 Interactive activity Explain the efficient market hypothesis. Summarize the evidence for and against the efficient market hypothesis. Indicate and justify the optimal investment strategy based on the efficient market hypothesis. Relate the stock market crashes of 1987 and 2000 to the strong and weak versions of the […]
Divestitures and the effect on R&D intensity/ innovation of selling firm Write a part about the effect of divestitures on R&D intensity/ innovation of the firm. For example: is a firm going to invest more in R&D when they did a divestiture or are they having more innovations after divestiture. That kind of things. Do […]
Essay Questions: Q-1. List four protective covenants that you might be interested in as a prospective bondholder. Briefly describe why these would be realistic bondholder concerns. How would a convertible bondholder decide whether to exercise his rights of exchange? Q-2- How do venture capital firms design successful deals? Why it is likely that venture capital […]
Asset Management Question 1 (Diversification 0.5pt) Consider the following: 1. Strategy I: Suppose that you invest $100 in a stock. There is a 60% chance that the stock will go up in value by $10 at by the end of this year. There is a 40% chance that the stock will go down in value […]
The total cost of workers includes both direct compensation and fringe benefits associated with employment, including the cost of post-employment benefits promised the employees. Question 1 options: True False Question 2 (2 points) Which of the following is an accurate statement about the relative size of government purchases and government spending? Question 2 options: Spending […]
Financial econometrics Ex 3 Complete the following set of exercises. 1. From the data provided, select/generate a random sample of 355 companies. From now on, forget about the raw data set, and work only with the companies in this sample. 2. Generate a data series with the same number of observations as the return-data series. […]
