New Microsoft Word Document (26)

I need help with Part 2.  Never sent an image before, so if this is difficult for you to read or understand then let me know.  Thx.

Respond to each of the following comments.a. If stock prices follow a random walk, then capital markets are little different from a casino.b. A good part of a company’s future prospects are predictable. Given this fact, stock prices can’t possibly follow a random walk.c. If markets are efficient, you might as well select your portfolio by throwing darts at the stock listings in The Wall Street Journal.

Your grandmother calls you up and asks you for advice on where to invest some of her money. What do you think would be an appropriate investment for her. Choose one from the following A. Bitcoin B. An electric vehicle company C. A dividend paying stock D. A mutual fund that invests in risky smaller companies in the biotech industry.

Decide whether the following statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain your reasoning. I bought a fund advertised on the web that says it uses a secret investment strategy to get an annual return twice that of​ stocks, with no risk at all.Choose the correct answer below. A.The statement does make sense because this secret investing strategy must be a new financial planning strategy that does not incorporate the three traditional investment​ considerations: liquidity,​ risk, and return. B.The statement does not make sense because investing in stocks is​ low-risk to get high​ returns, thus getting higher returns than stocks with this secret strategy must mean the fund advertised on the web is​ low-risk, not no risk. C.The statement does make sense because the strategy indicates that the return is a predictable​ amount, thus the fund advertised on the web is a​ no-risk investment. D.The statement does not make sense because…

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 3.672 and have $7758.69 to invest in your suggested stocks and bonds. They also want triple the number of shares of MAT compared to BUS. You have selected: Stock MAT which has a risk of 3.2 and costs $36.74 per share. Stock BUS which has a risk of 8 and costs $46.35 per share. Bond SAFE which has a risk of 1.6 and a cost of $37.8 per share. You have determined you should buy shares of MAT, shares of BUS, and shares of SAFE.

Using the concept of beta and standard deviation, explain why it is highly unlikely that any investor, pension fund, private equity firm, venture capitalist, or anyone on TV shows (Hint: American Greed, Shark Tank) could ever beat the market average. Be specific in your example calculations.

What comment can be made about this? Investing in cryptocurrency can help provide diversification in a portfolio since historically, cryptos have shown no price correlation with the U.S. stock market (Levy, 2021). Also, unlike banks and other intermediaries, the blockchain is open 24/7, the transactions provide transparency plus anonymity because though the crypto wallet is viewable to the public, the owners of the wallets are anonymous. And, there is a lower risk of error since the transactions involve little human interaction (Voigt & Rosen, 2021).

Assume that markets are efficient. Explain why you cannot retire all portfolio managers / financial analysts and simply rely on a random choice via computer to select securities for your portfolio. Give at least two reasons.

Assume that markets are efficient. Explain why you cannot retire all portfolio managers / financial analysts and simply rely on a random choice via computer to select securities for your portfolio. Discuss at least two reasons.

Hello please explain. Thank you very much.

Maria Juarez is a professional tennis player, and your firm managesher money. She has asked you to give her information about what determines the level of various interestrates. Your boss has prepared some questions for you to consider.a. What are the four most fundamental factors that affect the cost of money, or the general level of interestrates, in the economy?b. What is the real risk-free rate of interest (r*) and the nominal risk-free rate (rRF)? How are these tworates measured?c. Define the terms inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and maturityrisk premium (MRP). Which of these premiums is included in determining the interest rate on (1)short-term U.S. Treasury securities, (2) long-term U.S. Treasury securities, (3) short-term corporatesecurities, and (4) long-term corporate securities? Explain how the premiums would vary over timeand among the different securities listed.d. What is the term structure of interest rates? What is a yield…

Decide whether the following statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain your reasoning. ​I'm putting all my savings into stocks because stocks always outperform other types of investments over the long term.Choose the correct answer below. A.The statement does make sense because stocks historically outperform bonds and cash over the long term and investing in stocks is​ high-risk, which offers higher returns. B.The statement does not make sense because although stocks historically outperform bonds and cash over the long​ term, investing in stocks is​ high-risk and there is no guarantee that the investment will yield a high return. C.The statement does make sense because stocks are a​ low-risk investment, offering predictable low returns. D.The statement does not make sense because stocks never outperform bonds and cash over the long term.

Investors face various choices regarding what they can invest in, and the choices carry varying amounts of risk. For example, stock prices are much more volatile than bond prices.   What is the typical reason why investors would choose to put their money into an investment with higher risk rather than one with lower risk?   Riskier investments typically have higher returns. Assuming enough risk in a portfolio qualifies investors for a large government tax credit. They are irrational or are thrill‑seekers. They want to signal their courage to other investors and scare them away. Riskier investments are insured by the FDIC.

Using Yahoo! Finance, consider TD Bank and Suncor and compare their book values versus their market values. In your opinion, which one is more important for each company? Why ?

explain the meaning of the old Wall Street saying if you engage in financial market activity you either sleep well or eat well

Portfolio optimization is the “holy grail” of investing. All investors are seeking the optimal portfolio that will maximize returns while minimizing risks. The Excel spreadsheet is the “optimizer” for the average investor. What are the primary benefits of using Excel portfolio optimization analysis? How would you optimize your portfolio using Excel?

Help me

You are an investment analyst at an asset management firm. Your colleague, the in-house economist, has analyzed all the risky securities in your economy - A, B and C. He provides you with the following statistics: A B C Risk-Free Securities Expected Returns Standard Deviation 0.25 0.20 0.12 0.12 0.11 0.08 0.01 The Correlation between A and B is 0.25, between B and C is 0.75, and between A and C is 0.5. What is the slope of the capital market line in this economy? Group of answer choices 0.27 0.58 0.62 0.66 052

Discuss the importance of market efficiency, and explain why some markets are more efficient than others. Develop a simple understanding of behavioral finance.