FI discussion

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1,How is the creation of financial assets (such as stock, bonds, derivatives) beneficial to both the investor and the firm’s seeking to acquire real assets? If these financial assets did not exist, what would be the negative consequences for investors, industry and the economy?(10 points)

2,Whether you subscribe to the notion that markets are perfectly efficient or not, there is a significant level efficiency in U.S. markets compared to other countries. How does this efficiency help issuers of financial assets. and investors in these assets? What is the downside of efficiency if you are trading to beat the market? (10 points)

3,You are a 28 year old mid level executive with your MBA and $75,000 per year salary. You are selecting a fund for your retirement contributions and have a choice between an equity fund, a fixed income fund, and a balanced (50/50) fund. What are the advantages and disadvantages of each? Which would be more appealing to you at this stage of life?(10 points)

4,Investors flocked to the market for Treasury securities after the financial crisis of 2008,even though the rate of return on these instruments approached zero. With the prospect of positive inflation in the future, what did this mean for investor’s real returns? Why would investors be willing to accept such returns and still continue to invest?(10 points)

5,She borrows $8,000 from her broker to help pay for the purchase. The interest rate on the loan is 6%. What is the margin she purchases the stock? If the price falls to $60 per share, what is the remaining Jane Doe opens a brokerage account to purchase 500 shares of Qualcomm at $80 per share. margin? If the maintenance margin is 30%, will she receive a margin call?(10 points)

6,The picture

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