Questions from General Investment


Q: What benefit, if any, does international diversification offer the individual

What benefit, if any, does international diversification offer the individual investor? Compare and contrast the methods of achieving international diversification by investing abroad versus investing...

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Q: Briefly define and give examples of each of the following components of

Briefly define and give examples of each of the following components of total risk. Which type of risk matters, and why? a. Diversifiable risk b. Undiversifiable risk

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Q: Walt Davies and Shane O’Brien are district managers for Lee, Inc

Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they moved through the firm’s sales organization, they became (and still remain) close friends. Walt, who is 33 yea...

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Q: Briefly describe the behavior of the U.S. stock market

Briefly describe the behavior of the U.S. stock market over the last half of the 20th century and the early part of the 21st century.

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Q: What appeal do bonds hold for investors? Give several reasons why

What appeal do bonds hold for investors? Give several reasons why bonds make attractive investment outlets.

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Q: Explain what is meant by beta. What type of risk does

Explain what is meant by beta. What type of risk does beta measure? What is the market return? How is the interpretation of beta related to the market return?

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Q: What range of values does beta typically exhibit? Are positive or

What range of values does beta typically exhibit? Are positive or negative betas more common? Explain.

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Q: What is a common stock? What is meant by the statement

What is a common stock? What is meant by the statement that holders of common stock are the residual owners of the firm?

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Q: What is a stock option? What is the difference between a

What is a stock option? What is the difference between a stock option and a derivative security? Describe a derivative security and give several examples.

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Q: Briefly explain how the dividend decision is made. What corporate and

Briefly explain how the dividend decision is made. What corporate and market factors are important in deciding whether, and in what amount, to pay dividends?

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