Questions from General Investment

Q: Briefly explain what will happen to a bond’s duration measure if each

Briefly explain what will happen to a bond’s duration measure if each of the following events occur. a. The yield to maturity on the bond falls from 8.5% to 8%. b. The bond gets 1 year closer to its m...

Q: Why is the business cycle so important to economic analysis? Does

Why is the business cycle so important to economic analysis? Does the business cycle have any bearing on the stock market?

Q: Assume that an investor comes to you looking for advice. She

Assume that an investor comes to you looking for advice. She has $200,000 to invest and wants to put it all into bonds. a. If she considers herself a fairly aggressive investor who is willing to take...

Q: Contrast mutual fund ownership with direct investment in stocks and bonds.

Contrast mutual fund ownership with direct investment in stocks and bonds. Assume your class is going to debate the merits of investing through mutual funds versus investing directly in stocks and bon...

Q: Describe the process of creating an ETF. How does it differ

Describe the process of creating an ETF. How does it differ from the process by which an open-end fund is created?

Q: Why is Jensen’s measure (alpha) generally preferred over the measures

Why is Jensen’s measure (alpha) generally preferred over the measures of Sharpe and Treynor for assessing portfolio performance? Explain.

Q: For each pair of funds listed below, select the one that

For each pair of funds listed below, select the one that is likely to be less risky. Briefly explain your answer. a. Growth versus growth-and-income funds b. Equity-income versus high-grade corporate...

Q: Describe an ETF and explain how these funds combine the characteristics of

Describe an ETF and explain how these funds combine the characteristics of both open end and closed-end funds. Consider the Vanguard family of funds. Which of its funds most closely resembles a “spide...

Q: Following is a sample of 10 Level-I CFA exam questions

Following is a sample of 10 Level-I CFA exam questions that deal with many of the topics covered in Chapters 10 and 11 of this text, including bond prices and yields, interest rates and risks, bond pr...

Q: In the absence of any load charges, open-end mutual

In the absence of any load charges, open-end mutual funds are priced at (or very close to) their net asset values, whereas closed-end funds rarely trade at their NAVs. Explain why one type of fund wou...