Questions from General Investment

Q: Using the bond returns in Table 10.1 as a basis

Using the bond returns in Table 10.1 as a basis of discussion: Table 10.1: a. Compare the total returns on Treasury bonds during the 1970s to those produced in the 1980s. How do you explain the dif...

Q: Identify and briefly describe each of the following types of bonds.

Identify and briefly describe each of the following types of bonds. a. Agency bonds b. Municipal bonds c. Zero-coupon bonds d. Junk bonds e. Foreign bonds f. Collateralized mortgage obligations (CMOs)...

Q: Treasury securities are guaranteed by the U.S. government.

Treasury securities are guaranteed by the U.S. government. Therefore, there is no risk in the ownership of such bonds.” Briefly discuss the wisdom (or folly) of this statement.

Q: Dara Simmons, a 40-year-old financial analyst and

Dara Simmons, a 40-year-old financial analyst and divorced mother of two teenage children, considers herself a savvy investor. She has increased her investment portfolio considerably over the past fiv...

Q: Briefly describe each of the following measures for assessing portfolio performance and

Briefly describe each of the following measures for assessing portfolio performance and explain how they are used. a. Sharpe’s measure b. Treynor’s measure c. Jensen’s measure (Jensen’s alpha)

Q: Jim Pernelli and his wife, Polly, live in Augusta,

Jim Pernelli and his wife, Polly, live in Augusta, Georgia. Like many young couples, the Pernellis are a two-income family. Jim and Polly are both college graduates and hold high-paying jobs. Jim has...

Q: Why do companies like to issue convertible securities? What’s in it

Why do companies like to issue convertible securities? What’s in it for them?

Q: Describe LYONs, and note how they differ from conventional convertible securities

Describe LYONs, and note how they differ from conventional convertible securities. Are there any similarities between LYONs and conventional convertibles? Explain.

Q: Using the resources at your campus or public library or on the

Using the resources at your campus or public library or on the Internet, find the information requested below. a. Select any two convertible debentures (notes or bonds) and determine the conversion ra...

Q: Briefly describe each of the following theories of the term structure of

Briefly describe each of the following theories of the term structure of interest rates. a. Expectations hypothesis b. Liquidity preference theory c. Market segmentation theory According to these theo...