Questions from General Investment

Q: Why do you think the industrial and transportation averages are the two

Why do you think the industrial and transportation averages are the two that underlie Dow theory?

Q: In the chapter, we discussed the 3Com/Palm and Royal

In the chapter, we discussed the 3Com/Palm and Royal Dutch/ Shell mis pricings. Which of the limits to arbitrage would least likely be the main reason for these mis pricings? Explain.

Q: Based on the history of interest rates, what is the range

Based on the history of interest rates, what is the range of short-term rates that has occurred in the United States? The range of long-term rates? What is a typical value for each?

Q: When combined with Beta Naught in a 50/50 portfolio,

When combined with Beta Naught in a 50/50 portfolio, which of the other three funds will produce a portfolio that has the lowest standard deviation? a. New Horizon only. b. Quality Commodity only. c...

Q: Discuss how each of the following theories for the term structure of

Discuss how each of the following theories for the term structure of interest rates could account for a downward-sloping term structure of interest rates: a. Pure expectations b. Maturity preference c...

Q: Compare and contrast the Fed funds rate and the discount rate.

Compare and contrast the Fed funds rate and the discount rate. Which do you think is more volatile? Which market do you think is more active? Why?

Q: When we observe interest rates in the financial press, do we

When we observe interest rates in the financial press, do we see nominal or real rates? Which are more relevant to investors?

Q: For callable bonds, the financial press generally reports either the yield

For callable bonds, the financial press generally reports either the yield to maturity or the yield to call. Often yield to call is reported for premium bonds, and yield to maturity is reported for di...

Q: In the United States, what is the normal face value for

In the United States, what is the normal face value for corporate and U.S. government bonds? How are coupons calculated? How often are coupons paid?

Q: For a premium bond, which is greater, the coupon rate

For a premium bond, which is greater, the coupon rate or the yield to maturity? Why? For a discount bond? Why?