Questions from General Investment


Q: You are presented with the following data: /

You are presented with the following data: Calculate the MFCR for each week. Based on the result, are you bullish or bearish?

See Answer

Q: In early January 2010, you purchased $30,000 worth

In early January 2010, you purchased $30,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 8â…›% and mature in 2024. You paid a price of 94.125 when you bough...

See Answer

Q: Letticia Garcia, an aggressive bond investor, is currently thinking about

Letticia Garcia, an aggressive bond investor, is currently thinking about investing in a foreign (non-dollar-denominated) government bond. In particular, she’s looking at a Swiss government bond that...

See Answer

Q: What role does current market information play in analyzing investment returns?

What role does current market information play in analyzing investment returns? How do changes in economic and market activity affect investment returns? Explain.

See Answer

Q: Red Electrica España SA (E.REE) is refinancing its

Red Electrica España SA (E.REE) is refinancing its bank loans by issuing Eurobonds to investors. You are considering buying $10,000 of these bonds, which will yield 6%. You are also looking at a U.S....

See Answer

Q: Differentiate between the services and costs associated with full-service,

Differentiate between the services and costs associated with full-service, premium discount, and basic discount brokers. Be sure to discuss online transactions.

See Answer

Q: What is the random walk hypothesis, and how does it apply

What is the random walk hypothesis, and how does it apply to stocks? What is an efficient market? How can a market be efficient if its prices behave in a random fashion?

See Answer

Q: A certain convertible bond has a conversion ratio of 21 and a

A certain convertible bond has a conversion ratio of 21 and a conversion premium of 20%. The current market price of the underlying common stock is $40. What is the bond’s conversion equivalent?

See Answer

Q: You are considering investing $800 in Higgs B. Technology Inc

You are considering investing $800 in Higgs B. Technology Inc. You can buy common stock at $25 per share; this stock pays no dividends. You can also buy a convertible bond ($1,000 par value) that is c...

See Answer

Q: A certain 6% annual coupon rate convertible bond (maturing in

A certain 6% annual coupon rate convertible bond (maturing in 20 years) is convertible at the holder’s option into 20 shares of common stock. The bond is currently trading at $800. The stock (which pa...

See Answer