Questions from General Investment

Q: Is it necessarily true that, all else the same, an

Is it necessarily true that, all else the same, an index with more stocks is better? What is the issue here?

Q: What are Vega’s money- (or dollar-) weighted average returns

What are Vega’s money- (or dollar-) weighted average returns over the five-year period for Scenarios 2 and 3?

Q: What are 12b-1 fees? What expenses are 12b-

What are 12b-1 fees? What expenses are 12b-1 fees intended to cover? Many closed-end mutual funds charge a 12b-1 fee. Does this make sense to you? Why or why not?

Q: What is the basic principle behind dividend discount models?

What is the basic principle behind dividend discount models?

Q: If a firm has no dividends and has negative earnings, which

If a firm has no dividends and has negative earnings, which valuation models are appropriate?

Q: Why do growth stocks tend to have higher P/E ratios

Why do growth stocks tend to have higher P/E ratios than value stocks?

Q: What happens in the residual income model when EPS is negative?

What happens in the residual income model when EPS is negative?

Q: Why do we need to convert the typical equity beta to value

Why do we need to convert the typical equity beta to value a firm using FCF?

Q: Why does the value of a share of stock depend on dividends

Why does the value of a share of stock depend on dividends?

Q: A substantial percentage of the companies listed on the NYSE and the

A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to...