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For more course tutorials visit www.tutorialrank.com FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide   True/False  1.___  ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets.    2.___  ___ Free cash flow = Cash flow from operations – Capital expenditures + Disposition of property and equipment.    3.___  ___ The income statement indicates the flow of sales, expenses, and earnings during a period of time. – PowerPoint PPT presentation

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Title: FIN 402 Possible Is Everything--tutorialrank.com


1
FIN 402 Possible Is Everything/tutorialrank.com
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Final Exam Guide (UOP Course) For more
course tutorials visit www.tutorialrank.com FIN
402 Investment Fundamentals and Portfolio
Management Final Exam Guide True/False 1.___
___ The balance sheet shows what assets the firm
controls at a point in time and how it financed
the assets. 2.___ ___ Free cash flow Cash
flow from operations Capital expenditures
Disposition of property and equipment. 3.___
___ The income statement indicates the flow of
sales, expenses, and earnings during a period of
time.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Capital Markets and
Investment Banking Process Paper (UOP Course)
For more course tutorials visit www.tutorialrank.
com FIN402 Week 1 Assignment Capital Markets and
Investment Banking Process Paper
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 1.2
Preparing Carolyn Bowens Investment Plan For
more course tutorials visit www.tutorialrank.com
Case Problem 1.2 Preparing Carolyn Bowens
Investment Plan Carolyn Bowen, who just turned
55, is employed as an administrative assistant
for the Xcon Corporation, where she has worked
for the past 20 years. She is in good health,
lives alone, and has two grown children. A few
months ago her husband died, leaving her with
only their home and the proceeds from a 75,000
life insurance policy. After she paid medical and
funeral expenses, 60,000 of the life insurance
proceeds remained. In addition to the life
insurance proceeds, Carolyn has 37,500 in a
savings account, which she had accumulated over
the past 10 years. Recognizing that she is within
10 years of retirement, Carolyn wishes to invest
her limited resources so she will be able to live
comfortably once she retires.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 1.2, 2.1,
2.2, 3.1, 12.1 For more course tutorials
visit www.tutorialrank.com FIN 402 Week 1
Assignment Case Problem 1.2 Preparing Carolyn
Bowens Investment Plan FIN 402 Week 1 Assignment
Case Problem 2.1 Daras Dilemma What to Buy? FIN
402 Week 1 Assignment Case Problem 2.2 Ravi
Dumars High-Flying Margin Account FIN 402 Week 1
Assignment Case Problem 3.1 The Perezes Good
Fortune FIN 402 Week 1 Assignment Case Problem
12.1 Reverend Mark Thomas Ponders Mutual Funds
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 2.2 Ravi
Dumars High-Flying Margin Account For more
course tutorials visit www.tutorialrank.com Case
Problem 2.2 Ravi Dumars High-Flying Margin
Account Ravi Dumar is a stockbroker who lives
with his wife, Sasha, and their five children in
Milwaukee, Wisconsin. Ravi firmly believes that
the only way to make money in the market is to
follow an aggressive investment posturefor
example, to use margin trading. In fact, Ravi has
built himself a substantial margin account over
the years. He currently holds 75,000 worth of
stock in his margin account, though the debit
balance in the account amounts to only 30,000.
Recently Ravi uncovered a stock that, on the
basis of extensive analysis, he feels is about to
take off. The stock, Running Shoes (RS),
currently trades at 20 per share. Ravi feels it
should soar to at least 50 within a year. RS
pays no dividends, the prevailing initial margin
requirement is 50, and margin loans are now
carrying an annual interest charge of 10. Because
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 3.1 The
Perezes Good Fortune For more course tutorials
visit www.tutorialrank.com Case Problem 3.1 The
Perezes Good Fortune Angel and Marie Perez own a
small pool hall located in southern New Jersey.
They enjoy running the business, which they have
owned for nearly three years. Angel, a retired
professional pool shooter, saved for nearly 10
years to buy this business, which he and his wife
own free and clear. The income from the pool hall
is adequate to allow Angel, Marie, and their
children, Mary (age 10) and José (age 4), to live
comfortably. Although he lacks formal education
beyond the 10th grade, Angel has become an avid
reader. He enjoys reading about current events
and personal finance, particularly investing. He
especially likes Money magazine, from which he
has gained numerous ideas for better managing the
familys finances. Because of the long hours
required to run the business, Angel can devote 3
to 4 hours a day (on the job) to reading.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 12.1
Reverend Mark Thomas Ponders Mutual Funds For
more course tutorials visit www.tutorialrank.com
Case Problem 12.1 Reverend Mark Thomas Ponders
Mutual Funds The Reverend Mark Thomas is the
minister of a church in the San Diego area. He is
married, has one young child, and earns a modest
income. Because religious organizations are not
notorious for their generous retirement programs,
the reverend has decided he should do some
investing on his own. He would like to set up a
program that enables him to supplement the
churchs retirement program and at the same time
provide some funds for his childs college
education (which is still some 12 years away). He
is not out to break any investment records but
wants some backup to provide for the long-run
needs of his family.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 AssignmentCase Problem 2.1Daras
Dilemma What to Buy? For more course tutorials
visit www.tutorialrank.com Case Problem
2.1Daras Dilemma What to Buy? Dara Simmons, a
40-year-old financial analyst and divorced mother
of two teenage children, considers herself a
savvy investor. She has increased her investment
portfolio considerably over the past five years.
Although she has been fairly conservative with
her investments, she now feels more confident in
her investment knowledge and would like to branch
out into some new areas that could bring higher
returns. She has between 20,000 and 25,000 to
invest.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 DQ 1 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
are capital market instruments? How are they
used? Which is most important? Explain your
answer.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 DQ 2 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
is an asset class? How are asset classes
selected? What factors affect the selection?
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 DQ 3 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
is a derivative? What are the different types of
derivatives? How do businesses use derivatives to
mitigate risks?
13
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Individual Problem Set For more
course tutorials visit www.tutorialrank.com The
Problem Set is provided to you to enable you to
practice the concepts outlined in the textbook.
Select THREE completed problems from the
assignment and post your solutions to those
problems. 1. Creating prices for securities and
allowing for liquidity are functions of
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 1 Individual Weekly Question For
more course tutorials visit www.tutorialrank.com
Submit your Weekly Questions, with original
questions, in a Microsoft Word or text file. Be
sure to show your work to earn full credit.Do
not use Investopedia, About.com, Wikipedia, or
other generic internet websites as sources. Use
credible sources only. Also, do not use quotes in
lieu of a response in your own words.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Asset Classes Paper
(UOP Course) For more course tutorials
visit www.tutorialrank.com FIN402 Week 2
Assignment Asset Classes Paper
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 2.1
Traditional Versus Modern Portfolio Theory Whos
Right For more course tutorials
visit www.tutorialrank.com Case Problem 2.1
Traditional Versus Modern Portfolio Theory Whos
Right? Walt Davies and Shane OBrien are district
managers for Lee, Inc. Over the years, as they
moved through the firms sales organization, they
became (and still remain) close friends. Walt,
who is 33 years old, currently lives in
Princeton, New Jersey. Shane, who is 35, lives in
Houston, Texas. Recently, at the national sales
meeting, they were discussing various company
matters, as well as bringing each other up to
date on their families, when the subject of
investments came up. Each had always been
fascinated by the stock market, and now that they
had achieved some degree of financial success,
they had begun actively investing.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.1
Coatess Decision For more course tutorials
visit www.tutorialrank.com Case Problem 4.1
Coatess Decision On January 1, 2017, Dave
Coates, a 23-year-old mathematics teacher at
Xavier High School, received a tax refund of
1,100. Because Dave didnt need this money for
his current living expenses, he decided to make a
long-term investment. After surveying a number of
alternative investments costing no more than
1,100, Dave isolated two that seemed most
suitable to his needs.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.1, 4.2,
2.1, 5.2, 13.1 (Part a,b,c,d) For more course
tutorials visit www.tutorialrank.com FIN 402
Week 2 Assignment Case Problem 4.1 Coatess
Decision FIN 402 Week 2 Assignment Case Problem
4.2 The Risk-Return Tradeoff Molly ORourkes
Stock Purchase Decision FIN 402 Week 2 Assignment
Case Problem 2.1 Traditional Versus Modern
Portfolio Theory Whos Right FIN 402 Week 2
Assignment Case Problem 5.2 Susan Lussiers
Inherited Portfolio Does It Meet Her Needs FIN
402 Week 2 Assignment Case Problem 13.1 Assessing
the Stalcheckss Portfolio Performance (Part
a,b,c,d)
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.2 The
Risk-Return Tradeoff Molly ORourkes Stock
Purchase Decision For more course tutorials
visit www.tutorialrank.com Case Problem 4.2 The
Risk-Return Tradeoff Molly ORourkes Stock
Purchase Decision Over the past 10 years, Molly
ORourke has slowly built a diversified portfolio
of common stock. Currently her portfolio includes
20 different common stock issues and has a total
market value of 82,500. Molly is at present
considering the addition of 50 shares of either
of two common stock issuesX or Y. To assess the
return and risk of each of these issues, she has
gathered dividend income and share price data for
both over the last 10 years (20072016). Mollys
investigation of the outlook for these issues
suggests that each will, on average, tend to
behave in the future just as it has in the past.
She therefore believes that the expected return
can be estimated by finding the average HPR over
the past 10 years for each of the stocks. The
historical dividend income and stock price data
collected by Molly are given in the accompanying
table.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 5.2 Susan
Lussiers Inherited Portfolio Does It Meet Her
Needs For more course tutorials
visit www.tutorialrank.com Case Problem 5.2
Susan Lussiers Inherited Portfolio Does It Meet
Her Needs? Susan Lussier is 35 years old and
employed as a tax accountant for a major oil and
gas exploration company. She earns nearly
135,000 a year from her salary and from
participation in the companys drilling
activities. An expert on oil and gas taxation,
she is not worried about job securityshe is
content with her income and finds it adequate to
allow her to buy and do whatever she wishes. Her
current philosophy is to live each day to its
fullest, not concerning herself with retirement,
which is too far in the future to require her
current attention.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 13.1
Assessing the Stalcheckss Portfolio Performance
(Part a,b,c,d) For more course tutorials
visit www.tutorialrank.com Case Problem 13.1
Assessing the Stalcheckss Portfolio
Performance Mary and Nick Stalcheck have an
investment portfolio containing four investments.
It was developed to provide them with a balance
between current income and capital appreciation.
Rather than acquire mutual fund shares or
diversify within a given class of investments,
they developed their portfolio with the idea of
diversifying across various asset classes. The
portfolio currently contains common stock,
industrial bonds, mutual fund shares, and
options. They acquired each of these investments
during the past three years, and they plan to
purchase other investments sometime in the future.
22
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 DQ 1 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
are different ratio categories? Which category is
most important to bondholders? Why? Which
category is most important to stockholders? Why?
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 DQ 2 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
are liquidity ratios? Why are they important? How
may an investor use liquidity ratios when making
investment decisions?
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 DQ 3 (UOP Course) For more
course tutorials visit www.tutorialrank.com What
is the CAPM? Are CAPM assumptions realistic? Why
or why not?
25
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Learning Team Assignment Portfolio
Selection Paper (2 Papers) For more course
tutorials visit www.tutorialrank.com This
Tutorial contains 2 Different Papers Resources
Electronic Reserve Readings, Internet, University
Library Select one publicly traded bond. Select
five organizations from the following list. These
organizations represent the stocks that comprise
your portfolio. Cisco Systems, Inc.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 weekly Problem Set For more
course tutorials visit www.tutorialrank.com The
Problem Set is provided to you to enable you to
practice the concepts outlined in the textbook.
Select THREE completed problems from the
assignment and post your solutions to those
problems. In your solutions, provide an
explanation as to why you choose the answer. 1.
If RF 6 percent, b 1.3, and the ERP 6.5
percent, compute Ke(the required rate of return).
27
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 2 Weekly Question For more course
tutorials visit www.tutorialrank.com 1. (2
point) Calculate the expected return of the
following stocks using CAPM. You can use internet
websites to get Beta figures, such as Yahoo!
Finance, Google Finance, MSN Money, Marketwatch,
etc. Use 4 as the risk free rate and 6 as the
risk premium. a. Proctor Gamble (PG) b.
Microsoft (MSFT) c. Macys (M)
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Assignment Case Problem 6.1 Sara
Decides to Take the Plunge For more course
tutorials visit www.tutorialrank.com Case
Problem 6.1 Sara Decides to Take the Plunge Sara
Thomas is a child psychologist who has built a
thriving practice in her hometown of Boise,
Idaho. Over the past several years she has been
able to accumulate a substantial sum of money.
She has worked long and hard to be successful,
but she never imagined anything like this. Even
so, success has not spoiled Sara. Still single,
she keeps to her old circle of friends. One of
her closest friends is Terry Jenkins, who happens
to be a stockbroker and who acts as Saras
financial advisor.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Assignment Case Problem 6.1, 6.2,
7.1, 7.2, 8.1, 8.2, 9.2 For more course
tutorials visit www.tutorialrank.com FIN 402
Week 3 Assignment Case Problem 6.1 Sara Decides
to Take the Plunge FIN 402 Week 3 Assignment
Case Problem 6.2 Wally Wonders Whether Theres a
Place for Dividends FIN 402 Week 3 Assignment
Case Problem 7.1 Some Financial Ratios Are Real
Eye-Openers FIN 402 Week 3 Assignment Case
Problem 7.2 Doris Looks at an Auto Issue
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Assignment Relative Performance
Paper (UOP Course) For more course tutorials
visit www.tutorialrank.com FIN 402 Week 3
Assignment Relative Performance Paper (UOP Course)
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 6.2 Wally
Wonders Whether Theres a Place for Dividends For
more course tutorials visit www.tutorialrank.com
Case Problem 6.2 Wally Wonders Whether Theres a
Place for Dividends Wally Wilson is a commercial
artist who makes a good living by doing freelance
workmostly layouts and illustrationsfor local
ad agencies and major institutional clients (such
as large department stores). Wally has been
investing in the stock market for some time,
buying mostly high-quality growth stocks as a way
to achieve long-term growth and capital
appreciation. He feels that with the limited time
he has to devote to his security holdings,
high-quality issues are his best bet. He has
become a bit perplexed lately with the market,
disturbed that some of his growth stocks arent
doing even as well as many good-grade income
shares. He therefore decides to have a chat with
his broker, Al Fried.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 7.1 Some
Financial Ratios Are Real Eye-Openers For more
course tutorials visit www.tutorialrank.com Case
Problem 7.1 Some Financial Ratios Are Real
Eye-Openers Jack Arnold is a resident of Lubbock,
Texas, where he is a prosperous rancher and
businessman. He has also built up a sizable
portfolio of common stock, which, he believes, is
due to the fact that he thoroughly evaluates each
stock he invests in. As Jack says, You cant be
too careful about these things! Anytime I plan to
invest in a stock, you can bet Im going to learn
as much as I can about the company. Jack prefers
to compute his own ratios even though he could
easily obtain analytical reports from his broker
at no cost. (In fact, Bob Smith, his broker, has
been volunteering such services for years.)
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 7.2 Doris
Looks at an Auto Issue For more course tutorials
visit www.tutorialrank.com Case Problem 7.2
Doris Looks at an Auto Issue Doris Wise is a
young career woman. She lives in Phoenix,
Arizona, where she owns and operates a highly
successful modeling agency. Doris manages her
modest but rapidly growing investment portfolio,
made up mostly of high-grade common stocks.
Because shes young and single and has no
pressing family requirements, Doris has invested
primarily in stocks that offer the potential for
attractive capital gains. Her broker recently
recommended an auto company stock and sent her
some literature and analytical reports to study.
One report, prepared by the brokerage house she
deals with, provided an up-to-date look at the
economy, an extensive study of the auto industry,
and an equally extensive review of several auto
companies (including the one her broker
recommended). She feels strongly about the merits
of security analysis and believes it is important
to spend time studying a stock before making an
investment decision.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 8.1 Chris
Looks for a Way to Invest His Wealth For more
course tutorials visit www.tutorialrank.com Case
Problem 8.1 Chris Looks for a Way to Invest His
Wealth Chris Norton is a young Hollywood writer
who is well on his way to television
superstardom. After writing several successful
television specials, he was recently named the
head writer for one of TVs top-rated sitcoms.
Chris fully realizes that his business is a
fickle one, and on the advice of his dad and
manager, he has decided to set up an investment
program. Chris will earn about a half-million
dollars this year. Because of his age, income
level, and desire to get as big a bang as
possible from his investment dollars, he has
decided to invest in speculative, high-growth
stocks.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 8.2 An
Analysis of a High-Flying Stock For more course
tutorials visit www.tutorialrank.com Case
Problem 8.2 An Analysis of a High-Flying
Stock Marc Dodier is a recent university graduate
and a security analyst with the Kansas City
brokerage firm of Lippman, Brickbats, and Shaft.
Marc has been following one of the hottest issues
on Wall Street, CI Medical Supplies, a company
that has turned in an outstanding performance
lately and, even more important, has exhibited
excellent growth potential. It has five million
shares outstanding and pays a nominal annual
dividend of 0.05 per share. Marc has decided to
take a closer look at CI to assess its
investment potential. Assume the companys sales
for the past five years have been as
follows Marc is concerned with the future
prospects of the company, not its past. As a
result, he pores over the numbers and generates
the following estimates of future performance
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 9.2 Deb
Takes Measure of the Market For more course
tutorials visit www.tutorialrank.com Case
Problem 9.2 Deb Takes Measure of the
Market Several months ago, Deb Forrester received
a substantial sum of money from the estate of her
late aunt. Deb initially placed the money in a
savings account because she was not sure what to
do with it. Since then, however, she has taken a
course in investments at the local university.
The textbook for the course was, in fact, this
one, and the class just completed this chapter.
Excited about what she has learned in class, Deb
has decided that she definitely wants to invest
in stocks. But before she does, she wants to use
her newfound knowledge in technical analysis to
determine whether now would be a good time to
enter the market.
37
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 DQ 1 (UOP Course) For more course
tutorials visit www.tutorialrank.com What is the
difference between systematic and unsystematic
risk? How is the beta coefficient used to assess
risk? Is it better to maximize return or minimize
risk? Why?
38
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 DQ 2 (UOP Course) For more course
tutorials visit www.tutorialrank.com What is the
relationship between inflation and interest
rates? How does this relationship affect asset
prices? How does the unemployment rate affect
interest rates?
39
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 DQ 3 (UOP Course) For more course
tutorials visit www.tutorialrank.com What
factors must be taken into consideration when
creating an investment portfolio? How must a
portfolios components be weighted?
40
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Individual Assignment CAPM Web
Exercise (UOP Course) For more course tutorials
visit www.tutorialrank.com FIN 402 Week 3
Individual Assignment CAPM Web Exercise ResourceF
undamentals of Investment Management Prepare a
response to the following assignment
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Weekly Problem Set For more course
tutorials visit www.tutorialrank.com The Problem
Set is provided to you to enable you to practice
the concepts outlined in the textbook. Select
THREE completed problems from the assignment and
post your solutions to those problems. In your
solutions, provide an explanation as to why you
choose the answer. 1. Which of the following are
assumptions of the simple CAPM model?
42
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 3 Weekly Question For more course
tutorials visit www.tutorialrank.com Submit your
Weekly Questions, with original questions, in a
Microsoft Word or text file. Be sure to show your
work to earn full credit. 1. (2 point) Use
the expected return and Beta calculated in Week 2
Homework Questions 1 for the stocks listed PG,
Microsoft, Macys, JP Morgan Chase and Southern
Company. You will make three portfolios a.
Equal weight each of the stocks in the
portfolio b. Select the two lowest beta
stocks and weight them at 30
43
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 10.1 Max
and Veronica Develop a Bond Investment
Program For more course tutorials
visit www.tutorialrank.com Case Problem 10.1 Max
and Veronica Develop a Bond Investment
Program Max and Veronica Shuman, along with their
teenage sons, Terry and Thomas, live in Portland,
Oregon. Max is a sales rep for a major medical
firm, and Veronica is a personnel officer at a
local bank. Together they earn an annual income
of around 100,000. Max has just learned that his
recently departed rich uncle has named him in his
will to the tune of some 250,000 after taxes.
Needless to say, the family is elated. Max
intends to spend 50,000 of his inheritance on a
number of long-overdue family items (like some
badly needed remodeling of their kitchen and
family room, the down payment on a new Porsche
Boxster, and braces to correct Toms overbite).
Max wants to invest the remaining 200,000 in
various types of fixed-income securities.
44
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 10.1,
10.2, 11.1, 11.2 For more course tutorials
visit www.tutorialrank.com FIN 402 Week 4
Assignment Case Problem 10.1 Max and Veronica
Develop a Bond Investment Program FIN 402 Week 4
Assignment Case Problem 10.2 The Case of the
Missing Bond Ratings FIN 402 Week 4 Assignment
Case Problem 11.1 The Bond Investment Decisions
of Dave and Marlene Ca
45
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 10.2 The
Case of the Missing Bond Ratings For more course
tutorials visit www.tutorialrank.com Case
Problem 10.2 The Case of the Missing Bond
Ratings Its probably safe to say that theres
nothing more important in determining a bonds
rating than the underlying financial condition
and operating results of the company issuing the
bond. Just as financial ratios can be used in the
analysis of common stocks, they can also be used
in the analysis of bondsa process we refer to as
credit analysis. In credit analysis, attention is
directed toward the basic liquidity and
profitability of the firm, the extent to which
the firm employs debt, and the ability of the
firm to service its debt.
46
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 11.1 The
Bond Investment Decisions of Dave and Marlene
Carter For more course tutorials
visit www.tutorialrank.com Case Problem 11.1 The
Bond Investment Decisions of Dave and Marlene
Carter Dave and Marlene Carter live in the Boston
area, where Dave has a successful orthodontics
practice. Dave and Marlene have built up a
sizable investment portfolio and have always had
a major portion of their investments in
fixed-income securities. They adhere to a fairly
aggressive investment posture and actively go
after both attractive current income and
substantial capital gains. Assume that it is now
2016 and Marlene is currently evaluating two
investment decisions one involves an addition to
their portfolio, the other a revision to it.
47
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 11.2 Grace
Decides to Immunize Her Portfolio For more course
tutorials visit www.tutorialrank.com Case
Problem 11.2 Grace Decides to Immunize Her
Portfolio Grace Hesketh is the owner of an
extremely successful dress boutique in downtown
Chicago. Although high fashion is Graces first
love, shes also interested in investments,
particularly bonds and other fixed-income
securities. She actively manages her own
investments and over time has built up a
substantial portfolio of securities. Shes well
versed on the latest investment techniques and is
not afraid to apply those procedures to her own
investments.
48
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 DQ 1 (UOP Course) For more course
tutorials visit www.tutorialrank.com What are
examples of active and passive portfolio
management techniques? Why would a portfolio
manager pursue active instead of passive
techniques?
49
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 DQ 2 (UOP Course) For more course
tutorials visit www.tutorialrank.com Does
international diversification enhance risk
reduction? Why or why not? What measures may be
taken to reduce risks of international portfolio
investing?
50
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 DQ 3 (UOP Course) For more course
tutorials visit www.tutorialrank.com What are
unique risks associated with foreign investments?
How might an investor protect his or her
portfolio against such risks? Is it possible to
protect a portfolio from all risk?
51
FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Individual Assignment Risk and
Return Tradeoff Memo (2 Papers) For more course
tutorials visit www.tutorialrank.com This
Tutorial contains 2 Different Papers FIN 402
Week 4 Individual Assignment Risk and Return
Tradeoff Memo Resources Constructing and
Managing a Portfolio Simulation, Electronic
Reserve Readings, University Library Complete the
Constructing and Managing a Portfolio simulation
on the student website.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Learning Team Assignment Risk and
Return Analysis Paper (Portfolio Risk
Analysis) For more course tutorials
visit www.tutorialrank.com FIN 402 Week 4
Learning Team Assignment Risk and Return Analysis
Paper Complete the following activities Conduct
a risk assessment and return analysis on the
investment vehicles in your portfolio.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 4 Weekly Problem Set For more course
tutorials visit www.tutorialrank.com The Problem
Set is provided to you to enable you to practice
the concepts outlined in the textbook. Select
THREE completed problems from the assignment and
post your solutions to those problems. 1. The
weak form of the EMH states that ________ must be
reflected in the current stock price. 2. When
the market risk premium rises, stock prices will
________. 3. Proponents of the EMH typically
advocate __________. 4. Choosing stocks by
searching for predictable patterns in stock
prices is called 5. In a recent study, Fama and
French found that the return on the aggregate
stock market was _______
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FIN 402 Week 4 Weekly Question For more course
tutorials visit www.tutorialrank.com 1. (2
point) Go to Morningstar.com. Find the listed
mutual funds profiles on the website. Under
Ratings Risk, find and submit the Sharpe Ratio
for each fund. Then discuss, using the ratio,
which fund you believe provides a better
investment. Funds ARTVX
BPAIX BOSOX MFCFX
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 14.1 The
Franciscos Investment Options For more course
tutorials visit www.tutorialrank.com Case
Problem 14.1 The Franciscos Investment
Options Hector Francisco is a successful
businessman in Atlanta. The box-manufacturing
firm he and his wife, Judy, founded several years
ago has prospered. Because he is self-employed,
Hector is building his own retirement fund. So
far, he has accumulated a substantial sum in his
investment account, mostly by following an
aggressive investment posture. He does this
because, as he puts it, In this business, you
never know when the bottom will fall out. Hector
has been following the stock of Rembrandt Paper
Products (RPP), and after conducting extensive
analysis, he feels the stock is about ready to
move. Specifically, he believes that within the
next six months, RPP could go to about 80 per
share, from its current level of 57.50. The
stock pays annual dividends of 2.40 per share.
Hector figures he would receive two quarterly
dividend payments over his six-month investment
horizon.
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FIN 402 Week 5 Assignment Case Problem 14.1,
14.2, 15.1, 15.2 For more course tutorials
visit www.tutorialrank.com FIN 402 Week 5
Assignment Case Problem 14.1 The Franciscos
Investment Options FIN 402 Week 5 Assignment Case
Problem 14.2 Lukes Quandary To Hedge or Not to
Hedge FIN 402 Week 5 Assignment Case Problem 15.1
T. J.s Fast-Track Investments Interest Rate
Futures
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 14.2
Lukes Quandary To Hedge or Not to Hedge For more
course tutorials visit www.tutorialrank.com Case
Problem 14.2 Lukes Quandary To Hedge or Not to
Hedge A little more than 10 months ago, Luke
Weaver, a mortgage banker in Phoenix, bought 300
shares of stock at 40 per share. Since then, the
price of the stock has risen to 75 per share. It
is now near the end of the year, and the market
is starting to weaken. Luke feels there is still
plenty of play left in the stock but is afraid
the tone of the market will be detrimental to his
position. His wife, Denise, is taking an adult
education course on the stock market and has just
learned about put and call hedges. She suggests
that he use puts to hedge his position. Luke is
intrigued by the idea, which he discusses with
his broker, who advises him that the needed puts
are indeed available on his stock. Specifically,
he can buy three-month puts, with 75 strike
prices, at a cost of 550 each (quoted at 5.50).
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 15.1 T.
J.s Fast-Track Investments Interest Rate
Futures For more course tutorials
visit www.tutorialrank.com Case Problem 15.1 T.
J.s Fast-Track Investments Interest Rate
Futures T. J. Patrick is a young, successful
industrial designer in Portland, Oregon, who
enjoys the excitement of commodities speculation.
T. J. has been dabbling in commodities since he
was a teenagerhe was introduced to this market
by his dad, who is a grain buyer for one of the
leading food processors. T. J. recognizes the
enormous risks involved in commodities
speculating but feels that because hes young, he
can afford to take a few chances. As a principal
in a thriving industrial design firm, T. J. earns
more than 150,000 a year. He follows a
well-disciplined investment program and annually
adds 15,000 to 20,000 to his portfolio.
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FIN 402 Possible Is Everything/tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 15.2 Jim
and Polly Pernelli Try Hedging with Stock Index
Futures For more course tutorials
visit www.tutorialrank.com Case Problem 15.2 Jim
and Polly Pernelli Try Hedging with Stock Index
Futures Jim Pernelli and his wife, Polly, live in
Augusta, Georgia. Like many young couples, the
Pernellis are a two-income family. Jim and Polly
are both college graduates and hold high-paying
jobs. Jim has been an avid investor in the stock
market for a number of years and over time has
built up a portfolio that is currently worth
nearly 375,000. The Pernellis portfolio is well
diversified, although it is heavily weighted in
high-quality, mid-cap growth stocks. The
Pernellis reinvest all dividends and regularly
add investment capital to their portfolio. Up to
now, they have avoided short selling and do only
a modest amount of margin trading.
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