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FIN 402 Entire Course

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FIN 402 Entire Course;FIN 402 Week 1 DQs;What are capital market instruments? How are they used? Which is most important? Explain your answer.;What is an asset class? How are asset classes selected? What factors affect the selection?;What is a derivative? What are the different types of derivatives? How do businesses use derivatives to mitigate risks?;FIN 402 Week 1 IA Capital Markets and Investment Banking Process Paper;Resources: Week One readings;Prepare a 1,050- to 1,400-word paper in which you analyze the investment banking process. Address the following;Describe the investment banking process, including portfolio construction.;Describe factors that must be considered when selecting among asset classes for an investment portfolio.;Describe capital market instruments used in portfolio construction.;Make general recommendations for the composition of an investment portfolio. Include rationale for your recommendations.;Prepare to discuss this assignment in class.;Format your paper consistent with APA guidelines.;FIN 402 Week 2 DQs;What are different ratio categories? Which category is most important to bondholders? Why? Which category is most important to stockholders? Why?;What are liquidity ratios? Why are they important? How may an investor use liquidity ratios when making investment decisions?;What is the CAPM? Are CAPM assumptions realistic? Why or why not?;FIN 402 Week 2 Individual Assignment Asset Classes Paper;Resources: Week One readings;Select a mutual fund and a Dow 30 organization.;Prepare a 700- to 1,050-word paper in which you determine asset classes for your mutual fund and Dow 30 organization. Explain how such classifications and the current investment environment affect organizational decisions concerning portfolio composition.;Format your paper consistent with APA guidelines.;FIN 402 Week 2 Learning Team Assignment Portfolio Selection Paper;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.?;Citigroup?;Dell?;Disney?;Ford Motor Company?;General Electric Company?;The Home Depot, Inc.?;Lockheed Martin Corporation?;Microsoft?;Motorola, Inc.?;Proctor & Gamble?;Time Warner Inc.?;United Parcel Service of America, Inc.?;Wal-Mart Stores, Inc.?;Obtain faculty approval of your selections prior to beginning the assignment.;Conduct research on the selected securities. Examine the organizations? 10K and investment reports, general economic data, and Federal Reserve data.;Prepare a 1,750- to 2,450-word paper in which you describe the selected securities.;Format your paper consistent with APA guidelines.;FIN 402 Week 3 DQs;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?;What is the relationship between inflation and interest rates? How does this relationship affect asset prices? How does the unemployment rate affect interest rates?;What factors must be taken into consideration when creating an investment portfolio? How must a portfolio?s components be weighted?;FIN 402 Week 3 Individual Assignment CAPM Web Exercise;Resource:Fundamentals of Investment Management;Prepare a response to the following assignment;Web Exercise (Ch. 21) of Fundamentals of Investment Management, including calculations for each organization listed in Step 9;FIN 402 Week 3 Learning Team Assignment Relative Performance Analysis Paper;Resources: Week Three readings;Prepare a 1,050- to 1,750-word paper in which you address the following;Research the companies the team chose in Week Two using tools such as Yahoo? Finance, NASDQ?.com, other online resources as well as the company websites.;Determine the five-year average return for each security.;Identify the securities? industries.;Determine the average five-year average return in each industry.;Identify three additional stocks in each industry and determine the five-year average return for each.;Compare your securities? performance to those in the same industry and industry average.;Determine whether or not changes must be made to your portfolio.;Attach supporting Microsoft? Excel? tables and graphs to your paper. Spreadsheets must detail all calculations.;Format your paper consistent with APA guidelines.;FIN 402 Week 4 DQs;What are examples of active and passive portfolio management techniques? Why would a portfolio manager pursue active instead of passive techniques?;Does international diversification enhance risk reduction? Why or why not? What measures may be taken to reduce risks of international portfolio investing?;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?;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.;Select the weights of each vehicle in your portfolio, for example, the percentage of the portfolio each vehicle makes up.;Locate the beta for each security. Use.3 beta for bonds and 0 for money market instruments.;Calculate the weighted average risk and return of your portfolio. Then, change the weights of the vehicles to emphasize high-return performers.Perform another risk assessment, using these weightings. Change the weights of the vehicles to emphasize low-risk performers. Perform another risk assessment using these weightings.;Prepare a 1,750- to 2,450-word paper in which you present your risk assessment and return analysis, and summarize your findings. Include an explanation of the relationship between risk tolerance levels and macroeconomic variables.;Format your paper consistent with APA guidelines.;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.;Conduct research concerning the risk and return tradeoff, and the relationship between investment strategy and performance.;Prepare a 1,050- to 1,400-word memo to Rainier Ekstrom, Casa Bonita?s chief executive officer, in which you analyze risk and return tradeoffs associated with the organization?s investment portfolio. Address the following;Decisions you made in the simulation;A discussion of how the Sharpe ratio helps make investment decisions;Recommendations for changes in the organization?s investment strategy to improve its performance;FIN 402 Week 5 DQs;What are different types of alternative investment vehicles? Which is preferable? What factors could affect the choice of such a vehicle?;What are derivatives? How may they be used to manage a portfolio?;What is an individual retirement account? Is it important to have an individual retirement account?;FIN 402 Week 5 Learning Team Assignment Investment Portfolio Project Final Paper;Prepare a 1,050- to 1,750-word paper in which you assess the performance of your portfolio, using William Sharpe?s and Harry Markowitz?s modern portfolio theories. Address the following;Calculate your portfolio?s performance using the Sharpe, Jensen, and Treynor indices.;Describe the importance of these indices and interpret how your portfolio performed against the market index.;Discuss how you would revise your portfolio.;Format your paper consistent with APA guidelines.;FIN 402 Final Exam;FINAL EXAM;True/False (3 points each);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.;4. Financial ratios are used in stock and bond valuation models.;5. A good portfolio is a collection of individually good assets.;6. If the covariance of two stocks is positive, these stocks tend to move together over time.;7. Increasing the correlation among assets in a portfolio results in an increase in the standard deviation of the portfolio.;8. In a three asset portfolio the standard deviation of the portfolio is one third of the square root of the sum of the individual standard deviations.;9. Combining assets that are not perfectly correlated does affect both the expected return of the portfolio as well as the risk of the portfolio.;10. Bond rating agencies include the analysis of financial ratios in arriving at corporate bond ratings. Multiple choice (4 points each);11. In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk is;A. unique risk.;B. beta.;C. standard deviation of returns.;D. variance of returns.;E. skewness.;12. According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio?s rate of return is a function of;A. beta risk.;B. unsystematic risk.;C. unique risk.;D. reinvestment risk.;E. interest rate risk;13. The premise of behavioral finance is that;A. conventional financial theory ignores how real people make decisions and that people make a difference.;B. conventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors.;C. conventional financial theory should ignore how the average person makes decisions because the market is driven by investors that are much more sophisticated than the average person.;D. conventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors, and conventional financial theory should ignore how the average person makes decisions because the market is driven by investors that are much more sophisticated than the average person;E. None of these is correct.;14. The efficient market hypothesis ____________.;A. implies that security prices properly reflect information available to investors;B. has little empirical validity;C. implies that active traders will find it difficult to outperform a buy-and-hold strategy;D. has little empirical validity and implies that active traders will find it difficult to outperform a buy-and-hold strategy;E. implies that security prices properly reflect information available to investors and implies that active traders will find it difficult to outperform a buy-and-hold;15. The CAPM is not testable unless;A. the exact composition of the true market portfolio is known and used in the tests.;B. all individual assets are included in the market proxy.;C. the market proxy and the true market portfolio are highly negatively correlated.;D. the exact composition of the true market portfolio is known and used in the tests and all individual assets are included in the market proxy.;E. all individual assets are included in the market proxy, and the market proxy and the true market portfolio are highly negatively correlated.;16. The duration of a bond is a function of the bond?s;A. coupon rate.;B. yield to maturity.;C. time to maturity.;D. All of these are correct.;E. None of these is correct.;17. Treasury STRIPS are;A. securities issued by the Treasury with very long maturities.;B. extremely risky securities.;C. created by selling each coupon or principal payment from a whole Treasury bond as a separate cash flow.;D. created by pooling mortgage payments made to the Treasury.;E. created both by selling each coupon or principal payment from a whole Treasury bond as a separate cash flow and by pooling mortgage payments made to the Treasury

 

Paper#34911 | Written in 18-Jul-2015

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