stors with stock in various companies can face significant risk, and significant benefits. How do you see the stock market affecting your own investing plans in the future? What types of risks do investors take? Do you have any com

At a lunch with some business associates, you discuss the reason for the relationship between the economy and the stock market. One of your associates contends that she has heard that stock prices typically turn before the economy does. How would you explain this phenomenon?

Suppose the market is strong from efficient. Can you expect to earn excess returns if you make trades based on: a. An analyst’s forecasts about future company earnings? b. Rumours about the takeover of a firm? c. A company’s announcement of a successful prototype launch?

Your company has been very profitable and expects continued financial success. Its stock price has reached a pointwhere the company needs to make it more affordable. Wouldyou recommend a stock dividend or a stock split? Why?

(a). Large businesses spend millions of dollars annually on insurance. Why? Should they insure against all risks or does insurance make more sense for some risks than others? (b). Why might firms prefer to fund investments using retained earnings or debt rather than issuing equity? (c). How does asymmetric information explain the negative stock price reaction to the announcement of an equity issue?

Stock brokers must think in k-levels because:     They don’t know what companies are really up to.     They don’t know what the future will bring.     Their valuation of a company depends on uncertainty at the firm level.     Their valuation of a company depends on how others value that company.

How do people get money out of the stockmarket?

If investing in the stock market today, how would your decisions be affected based on what you know about the market? If you already invest in the stock market, will you start doing anything differently?

he concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient, the price of a security—such as a share of a particular corporation’s common stock—should be (equal to or more than)     the present value estimate of the firm’s expected cash flows discounted by its appropriate rate of return (also called the intrinsic value of the stock).   Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to “beat” the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency that reflect what information is incorporated in stock prices. Identify the form of capital market efficiency under the efficient market hypothesis…

Elon is a financial manager with Wealth Creation, an investment advisory company. He must select specific investments, for example, stocks and bonds from a variety of investment alternatives. Which of the following statements is most likely to be the objectiuve function in this scenario? Your choice: Maximization of tax dues Maximization of expected return Minimization of the number of stocks held Maximization of investment risk Submit 3/6 Qs