FINA3080Investment Analysis and Portfolio Analysis Midterm Examination Date: March 12‚ 2013 1. If all investors become more risk averse the SML will _______________ and stock prices will _______________. A. shift upward; riseB. shift downward; fallC. have the same intercept with a steeper slope; fallD. have the same intercept with a flatter slope; rise 2. According to the capital asset pricing model‚ a security with a _________. A. negative alpha is considered a good buyB. positive alpha is
Premium Stock market Investment Financial markets
The following Request for Proposal questionnaire is a tool that supports the overall selection process of suitable investment managers to help meet your business and client proposition needs. Other tools and templates are also available so please contact your Business Development Manager for more information. Request for Proposal questionnaire - Investment Management Aim The aim of this stage of the process is to form a match of the investment managers’ propositions against your
Premium Question Collective investment scheme Management
Chapter 2 – Asset Classes and Financial Instruments Basic 1. What are the key differences between common stock‚ preferred stock‚ and corporate bonds? The key differences are that common stock has voting power‚ residual claim‚ and limited liability. Preferred stock on the other hand‚ behaves like a hybrid stock because it has preferred and common dividends‚ but also it behaves like the corporate bonds because it has fixed income and is non-voting characteristics. Finally‚ corporate bonds are
Premium Bond Stock Bonds
Dedication To my family‚ especially my mom and dad‚ Julieth and Phillip I love you all. I am proud to be part of you. May God richly bless us and multiply the fruits of our hard work and tenacity. It’s neither by might nor by power‚ but by my spirit‚ says the Lord! i Acknowledgements I wish to express my utmost gratitude to my supervisor‚ Mr. K. O Apreku for tirelessly working with me in carrying out this research. His inspiration‚ support‚ and guidance went a long way in making this
Premium Bank Bank run
Managing Assets and Liabilities: Strategies for Insurance Companies October 2008 Financial Services Commission of Jamaica Insurance Seminar - October 30‚ 2008 Michael Hafeman‚ FSA‚ FCIA‚ MAAA Context for Asset-Liability Management Risks and Risk Tolerance Risk Measurement ALM Techniques Organizational Issues Supervisory Objectives Managing Assets and Liabilities: Strategies for Insurance Companies 2 What is it and why is it used? Managing Assets and Liabilities: Strategies
Premium Risk management Risk Asset
400 1‚700 1‚900 1‚600 1‚700 2‚000 2‚100 2‚200 1.60 1.00 0.07 0.05 Asset X Value Beginning 20‚000 22‚000 21‚000 24‚000 22‚000 23‚000 26‚000 25‚000 24‚000 27‚000 Ending 22‚000 21‚000 24‚000 22‚000 23‚000 26‚000 25‚000 24‚000 27‚000 30‚000 Beta (X) Beta (Y) Risk Free Rate EMPR a. Calculate the annual rate of return for each asset in each of the 10 preceding years‚ and use those v the average annual return for each asset over the 10-year period. Return (X) Return (Y) 15.00% 2.27% 20.95% -1
Premium Investment Rate of return
2012‚ pp.141-178 ISSN: 2146-4138 www.econjournals.com Theoretical and Empirical Review of Asset Pricing Models: A Structural Synthesis Şaban Çelik Deparment of International Trade and Finance‚ Yasar University‚ Izmir‚ Turkey. Tel: +90-232-4115343; Fax: +90-232-4115020. E-mail: saban.celik@yasar.edu.tr ABSTRACT: The purpose of this paper is to give a comprehensive theoretical review devoted to asset pricing models by emphasizing static and dynamic versions in the line with their empirical investigations
Premium Finance Economics
CHAPTER 4: ACCOUNTING FOR GOVERNMENTAL OPERATING ACTIVITIES ( ILLUSTRATIVE TRANSACTIONS AND FINANCIAL STATEMENTS Solutions to Exercises and Problems 4-2. 1. a. 6. a. 2. c. 7. c. 3. d. 8. c. 4. b. 9. b. 5. d. 10. b. Ch. 4‚ Solutions (Cont’d) 4-3. a. Calculation of Estimated Required Tax Anticipation Financing Estimated Expenditure Requirements: Budgeted expenditures‚ remainder of FY 2011 $2‚470‚000 Current liabilities
Premium Generally Accepted Accounting Principles Finance Fiscal year
10: Accounting for Fixed Assets • Fixed asset is an asset held for producing or providing goods and/or services and is not held for sale in the normal course of the business. • Cost to include purchase price and attributable costs of bringing asset to its working condition for the intended use. It includes financing cost for period up to the date of readiness for use. • Self-constructed assets are to be capitalised at costs that are specifically related to the asset and those which are allocable
Premium Generally Accepted Accounting Principles Currency Balance sheet
Capital Asset Pricing Model Capital Asset Pricing Model (CAPM) Capital market theory extends portfolio theory and develops a model for pricing all risky assets. It is an equation that quantifies security risk and defines a risk/return relationship Capital asset pricing model (CAPM) will allow you to determine the required rate of return for any risky asset Implications of the CAPM: CAPM indicates what should be the expected or required rates of return on risky assets This helps to
Premium