Tut3 CR3

Question 1 a. Distinguish between the following:i. Primary market and secondary market ii. Money market and capital market iii. Fixed income security and convertible security iv. Systematic risk and Unsystematic risk b. You are an investment advisor and you are asked to guide a new investor to trade shares on the Ghana Stock Exchange (GSE). Explain any six (6) of the listing requirement of GSE that are to be met before the company can start trading on the market.   Question 2 a. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities. The performance of these mutual funds and the portfolio they build needs to be evaluated as frequently as possible. Evaluating the performance of these mutual funds is important for both existing and potential investors. The Table below provides the average return, standard deviation and betas of selected…

q15 Which type of brokerage account permits the broker to buy and sell shares for the investor without first contacting the investor for approval? a. Discretionary Account b. All the options are wrong c. Margin Account d. Cash Management Account   q16   Buying assets that yield a return greater than the minimum acceptable hurdle rate is a part of which core principles of Finance. a. Cost principle b. Investment principle c. Dividend principle d. Financing principle

Among the six types of investment, which is the hardest to acquire? Why?

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Pls solve soon i will give u 2 like instant Investors are most likely to use what type of valuation across a variety of different securities? a. Discounted Cash Flow Model b. Residual Operating Income Model c. Dividend Discount Model

MINDTAP Q Search this course Zulaikha binti M ian 1 aining: 1:13:50 Save Submit Test for Gradi « Question 36 of 50 Which of the following statements is CORRECT? O a. Money markets are markets for long-term debt and common stocks. O b. Money market mutual funds usually invest their money in a well-diversified portfolio of liquid common stocks. O c. The NYSE operates as an auction market, whereas NASDAQ is an example of a dealer market. d. While the distinctions are becoming blurred, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other partles. O e. A liquid security is a security whose value is derived from the price of some other "underlying" asset. N W. > 低日见里 be here to search

What options does a firm have to spend its free cash flow​ (after it has satisfied all interest​ obligations)? ​(Select the best choice​ below.)     A. Use it to repurchase shares.   B. Pay it out as dividends.   C. Use it to make investments.   D. All of the above.

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Financial markets, Saving and Investment (chapter 13) Q:  Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments. Note Please Highly Requesting Do not Copy Paste Questions From Chegg, Or Coursehero .. I Have Chegg, Coursehero

Reflection paper about this principle   Principle #2: Expect Volatility (unexpected changes) and Profit from itinvesting in stocks means dealing with volatility. Instead of running for the exits during times of market stress, the smart investor greets downturns as chances to find great investments. Graham illustrated this with the analogy of "Mr. Market," the imaginary business partner of each and every investor. Mr. Market offers investors a daily price quote at which he would either buy an investor out or sell his share of the business. Sometimes, he will be excited about the prospects for the business and quote a high price. Other times, he is depressed about the business's prospects and quotes a low price.

Could you please answer all of this please with your own huhu i need the correct answer:(

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1.What type of trading order are you likely to give your broker in each of the three circumstances below? a. You want to buy shares of company ABC to diversify your portfolio. You believe the share price is good and you want the trade done very quickly and cheaply. b. You want to buy shares of ABC into your portfolio of investment, but your analysis shows that the current stock price is too high given the firms prospects. You would like to purchase the shares at a price about 10% lower than the current market price. c. You are planning to purchase a brand-new car sometime in the next month or two and will sell your shares of ABC to provide the funds for your own down payment. You believe that the share price of ABC will rise in the coming few weeks. However, if you are wrong and the share price should drop suddenly you will not be able to afford to purchase the car. Therefore, you want to hold on to the shares for as long as possible, but still protect yourself against the risk of a…

Question 4                                                                                         You are a financial investor who actively buys and sells in the securities market. Now you have a portfolio, including four shares: $7,500 of Share A, $4,800 of Share B, $5,700 of Share C, and $2,500 of Share D.   Required: A)Compute the weights of the assets in your portfolio?  B)If your portfolio has provided you with returns of 7.7%, 10.5%, - 8.7% and 14.2% over the past four years, respectively. Calculate the geometric average return of the portfolio for this period? C)Assume that expected return of the stock A in your portfolio is 13.2%. The risk premium on the stocks of the same industry are 6.8%, beta of this stock is 1.3. Calculate the risk-free rate of return using Capital market pricing model (CAPM). ? D)You have another portfolio that comprises of two shares only: $500 Tesla shares and $700 Eagle shares. Below is the data of your portfolio:     Tesla Eagle Expected…

Question 2 The following is the information for securities of ABC plc and XYZ plc: XYZ plc 26 40 1.25 Particulars Expected return Standard deviation Beta ABC plc 25 42 0.85 The correlation coefficient between the returns of the two securities is 0.70 and standard deviation of the market return is 20%. Required (a) As a new graduate accountant, CPA(T), determine if it is better to invest in securities of ABC plc or XYZ plc (b) If the proportional of investment in ABC plc is 40% and that in XYZ plc is 60% determine the expected rate of return and portfolio standard deviation (c) Determine the risk free rate

a) Calculate the expected return for Stock Media Prima and Stock Astronote: No need excel formula!

Investing in mutual funds allows an investor to achieve O A. Diversification B. Professional portfolio management C. Guaranteed reservations at your favorite restaurant D. Returns equal to the S&P 500 O E. Both A & B

Short Q/Ans: Answer shortly by just giving reasons Q: Indirect transfer through investment bankers is a major flow of funds in a financial market.Explain it?  Q: Bonds are considered as less riskier instrument as compared to debentures. Being a rational investor do you support this statement or not? Provide logical arguments to support your verdict

Hello i just saw the company policy, this question is the second time i am asking but i would like to get help with question 6

Moving to another question will save this response. Quèstion 3 For each of the following definition select the correct term Definition Term A time draft payable to a seller of goods, with payment guaranteed by a bank Give bond holders the opportunity to purchase common stock at a prespecified price Government-issued foreign currency-denominated debt Option that can be exercised at any time before (and on) the expiration date Hybrid security that has characteristics of both bonds and common stock The risk that depositors will demand more cash than banks can immediately provide

Answer quickly After making an investment, an investor learns that Intel stock is now undervalued. This is an illustration of a. Market Interruption  b. Portfolio Management  c. Security Analysis  d. Asset Allocation

Solve a,b and c please You wish to create a synthetic equity position. You believe that the price of the stock will decrease over the next year. You have the following securities available to you to create this position. Note that all options are European and Beetroot Inc does not pay dividends.   Current Value of Available Securities Beetroot Inc. Equity: $10.00 Call Premium: $ 5.31 Put Premium: $ 0.50 Strike for Call or Put: $14.00 Call and Put Expiration: 1 year Annual Risk-Free Rate (annually compounded): 3% per year   a) Confirm that the put-call parity holds in this case. b)Specifically, identify the transactions that you will enter into to create your position? c)At expiration, the value of the equity will have increased or decreased. Show how your synthetic position will have the same payoff as a stock-only portfolio. Show this if Beetroot Inc’s equity if the equity value increases to $100 or decreases to $5.

Match the words with the term.   Question 14 options: 12345 venture capital 12345 quality of security to satisfy investors 12345 long term debt financing 12345 uncertainty 12345 share versus debt financing   1. business risk 2. instrument risk 3. risk capital 4. bond 5. financial risk

Question 5  In class, we discussed the CAPM model and its implications. What is the market portfolio? What assets does the model price? Is the S&P 500 a good proxy for the market portfolio, and if not, why? Please elaborate.

Hi I need help with this problem fill in options for blank 1 is debt or equity   fill in options for blank 2 is a claim to partial ownership In or an IOU, or promise to pay, from  fill in options for blank 3 is the stock holders or Osvaldo and the other bondholders fill in options for blank 4 is higher or lower

hi there tutor. im here to cure my doubts. i hv a ques to ask. please help solve. investment management Required: Based on the table, calculate holding period return (HPR) for the 3 investment alternatives. Based on your answer in (a), which investment should you choose and why? Describe 2 advantages and 2 disadvantages of international diversification. thats all. thank you tutor!

File Preview Problem 3: Stock Valuation (30 points) You work as a security analyst for a large investment firm. The portfolio manager has asked you whether it is a good idea to buy "ABC" stocks. The current stock price for "ABC" is $345 and the firm has just paid a $14 dividend. You have decided that the dividend discount model is appropriate for your valuation of ABC's stock. After carefully analyzing the firm and all relevant data, your best forecast is that the firm's dividends are expected to remain constant for the next five years. After that, dividends are expected to grow at 15% for 10 years. Following that, the growth is expected to be 3% forever. Assume that the required rate of return is 10%. A) What is the (theoretical) stock value based on the dividend discount model? B) Would you recommend buying the stock? Explain Hint: There are many ways to solve the problem. The simplest approach is to split it into two parts, find the value of each part, and then add the values…

Q: Suppose an investor invests her money in three different assets-lands, bonds and stocks- and three possible states can occur. The return matrix of these three assets by states is as follows: (1.05 1.52 1.37 0.90 1.20 1.10 1.02 1.24 1.16/ Do state prices exist? Is there an arbitrage portfolio? If yes, give one example. If no, explain why

c) Calculate the covariance for the above stockNote: No need excel formula