Questions from General Investment

Q: What are the advantages and disadvantages of exchange-traded funds versus

What are the advantages and disadvantages of exchange-traded funds versus mutual funds?

Q: Consider historical data showing that the average annual rate of return on

Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 90 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500...

Q: Financial engineering has been disparaged as nothing more than paper shuffling.

Financial engineering has been disparaged as nothing more than paper shuffling. Critics argue that resources used for rearranging wealth (i.e., bundling and unbundling financial assets) might be bette...

Q: Why would you expect securitization to take place only in highly developed

Why would you expect securitization to take place only in highly developed capital markets?

Q: What is the relationship between securitization and the role of financial intermediaries

What is the relationship between securitization and the role of financial intermediaries in the economy? What happens to financial intermediaries as securitization progresses?

Q: During an interview with her investment adviser, a retired investor made

During an interview with her investment adviser, a retired investor made the following two statements: a. “I have been very pleased with the returns I’ve earned on Petrie stock over the past two years...

Q: Although we stated that real assets constitute the true productive capacity of

Although we stated that real assets constitute the true productive capacity of an economy, it is hard to conceive of a modern economy without well-developed financial markets and security types. How w...

Q: An analyst estimates that a stock has the following probabilities of return

An analyst estimates that a stock has the following probabilities of return depending on the state of the economy: What is the expected return of the stock?

Q: Given $100,000 to invest, what is the expected

Given $100,000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills (U.S. Treasury bills) based on the following table?

Q: Based on the scenarios below, what is the expected return for

Based on the scenarios below, what is the expected return for a portfolio with the following return profile? Use the following scenario analysis for Stocks X and Y to answer CFA Problems 3 through 5 (...