FIN 320 MODULE 6 JOURNAL

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Which of the following is higher risk? a. Stock market index mutual fund. b. Bond mutual fund c. Investing in Bitcoin, a crypto currency d. Invest in a certificate of deposit at a bank.

Acting as a financial adviser one of your duties is to create a balance of stocks and bonds that are tailored to the risk tolerance of your client. This means, some people want riskier balance with the goal of making more money, while others will take a lower risk to be safer with their investments. Your client has informed you that they have a desired average risk of 6.381 and have $6539.19 to invest in your suggested stocks and bonds. They also want tripple the number of shares of MAT compared to BUS. You have selected: Stock MAT which has a risk of 5.8 and costs $34.54 per share. Stock BUS which has a risk of 8.4 and costs $27.09 per share. Bond SAFE which has a risk of 3 and a cost of $33.6 per share. You have determined you should buy shares of MAT, shares of BUS, and shares of SAFE.

a. “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both causing the market to crash and then helping it recover from the crisis.” Is this statement true? Discuss with an example.b. What are the risks and rewards of investing in the stock market as compared to the bond market?

4. Portfolio expected return and risk Aa Aa A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor's expected rate of retum. Analyzing portfolio risk and return invalves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Percentage of Expected standard stock Portfolio Return Deviation Artemis Inc. 20% 8.00% 27.00% Babish & Co. 30% 14.00% 31.00% Cornell Industries 35% 11.00% 34.00% Danforth Motors 15% 5.00% 36.00% what is the expected retum on Andre's stock…

If a bank manager wants to protect the bank against losses that would be incurred on its portfolio of Treasury securities should interest rates rise, he could financial futures.  A. sell put B. sell call C. buy put D.buy call

If a bank manager wants to protect the bank against losses that would be incurred on its portfolio of Treasury securities should interest rates rise, he could options on financial futures. Select one: A. sell put B. sell call C. buy put D. buy call

What is the primary motivation of investors in performing security analysis? A-identify the best times to buy and sell securities  B-Contribute to the efficiency of securities markets C-Identify securities whose insrinsic values are at or near their market values  D-Identify mispriced stocks

Portfolio expected return and risk A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor’s expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 31.00% Babish & Co. 30% 14.00% 35.00% Cornell Industries 35% 11.00% 38.00% Danforth Motors 15% 3.00% 40.00%   What is the expected…

All parts areunder one question and therefore can be answered.  7. Portfolio expected return and risk A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor’s expected rate of return.   Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case:   Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table:   Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 25.00% Babish & Co. 30% 14.00% 29.00% Cornell Industries 35% 11.00%…

What is a good response to.... A hedge is something an investor can use to mitigate risk while pursuing many different types of investments. There are also differing types of hedges. A cash flow hedge is designed to manage the risk of variability in future cash flows related to forecasted transactions. It stabilizes expected cash flows by using financial instruments to lock in rates or prices (Hoyle, 2024, p. 337). An example out of our textbook involves a company expecting to purchase raw materials in the future entering into a forward contract to lock in the current exchange rate, reducing the risk of fluctuations in currency rates (Hoyle, 2024, p. 340). A fair value hedge aims to offset the risk of changes in the fair value of an existing asset or liability due to market fluctuations. This hedge stabilizes the value of recognized items on the balance sheet (Hoyle, 2024, p. 313). A company holding a fixed-rate bond may use an interest rate swap to hedge against the risk of…

When a firm invests in money market instruments, it is taking _______ and should expect __________.   Question 17 options:   1)  high risk, high returns   2)  high risk, low returns   3)  low risk, low returns   4)  low risk, high returns