Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds C) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCI) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of similar risk bonds is 9%. What is the percentage price change of the bond if the the market yield were to increase to 10%?
Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds C) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCI) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of similar risk bonds is 9%. What is the percentage price change of the bond if the the market yield were to increase to 10%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Q1: Define and differentiate between:
a)
Organized exchanges and Over the counter
markets
b) Open Ended vs Closed Ended Mutual Funds
C)
Moral Hazard and Adverse selection
Q2: What is meant by asset transformation and how is
it the basis for differentiating between indirect finance
and direct finance?
Q3: What are the three main reasons for regulating
financial markets and institutions? Also list the major
regulation examples under each of the three reasons.
Q4: What value do mutual funds add for individual
investors and how?
Q5: Using the relevant financial securities and
institutions, explain the chain of events which lead to
the 2007 global financial crisis.
Q6: Last year Fauji Fertilizer Company Limited (FFCI)
gave an annual dividend per share of Rs. 8.85 which is
expected to grow at 5%, forever. Calculate the per
share price of the stock if its required rate of return is
14%?
Q7: Calculate the duration of a 7-year coupon bond
having a 11% coupon rate. The current market yield of
similar risk bonds is 9%. What is the percentage price
change of the bond if the the market yield were to increase to 10%?
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