Questions from Financial Management


Q: Discuss the accuracy of stock valuation, and compare it with that

Discuss the accuracy of stock valuation, and compare it with that of bond valuation.

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Q: Do stocks that don't pay dividends have value? Why?

Do stocks that don't pay dividends have value? Why?

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Q: How is the IPO price of a stock determined? Is that

How is the IPO price of a stock determined? Is that price likely to be the stock’s intrinsic value.

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Q: What is the fundamental motivation behind portfolio theory? That is,

What is the fundamental motivation behind portfolio theory? That is, what are people trying to achieve by investing in portfolios of stocks rather than in a few individual stocks or in debt? What ob...

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Q: Describe risk in finance as up and down movement of return.

Describe risk in finance as up and down movement of return. Does this idea make sense in terms of the variance definition?

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