Questions from General Investment

Q: What monetary and fiscal policies might be prescribed for an economy in

What monetary and fiscal policies might be prescribed for an economy in a deep recession?

Q: Choose an industry and identify the factors that will determine its performance

Choose an industry and identify the factors that will determine its performance in the next three years. What is your forecast for performance in that time period?

Q: Assume you invested in an asset for two years. The first

Assume you invested in an asset for two years. The first year you earned a 15% return, and the second year you earned a negative 10% return. What was your annual geometric return?

Q: You predict that interest rates are about to fall. Which bond

You predict that interest rates are about to fall. Which bond will give you the highest capital gain? a. Low coupon, long maturity. b. High coupon, short maturity. c. High coupon, long maturity. d. Ze...

Q: Which of the following forecasts is consistent with a steeply upwardly sloping

Which of the following forecasts is consistent with a steeply upwardly sloping yield curve? a. Monetary policy will be expansive and fiscal policy will be expansive. b. Monetary policy will be expansi...

Q: An insurance company must make payments to a customer of $10

An insurance company must make payments to a customer of $10 million in one year and $4 million in five years. The yield curve is flat at 10%. a. If it wants to fully fund and immunize its obligation...

Q: Briefly discuss what actions the U.S. Federal Reserve would

Briefly discuss what actions the U.S. Federal Reserve would likely take in pursuing an expansionary monetary policy using each of the following three monetary tools: a. Reserve requirements. b. Open m...

Q: a. A 6% coupon bond paying interest annually has a

a. A 6% coupon bond paying interest annually has a modified duration of 10 years, sells for $800, and is priced at a yield to maturity of 8%. If the YTM increases to 9%, what is the predicted change i...

Q: Use the following data to solve this problem. Cash payments

Use the following data to solve this problem. Cash payments for interest ……………………………………….$(12) Retirement of common stock ………………………………………(32) Cash payments to merchandise suppliers ……………………..(85) Purc...

Q: a. Explain the impact on the offering yield of adding a

a. Explain the impact on the offering yield of adding a call feature to a proposed bond issue. b. Explain the impact on both effective bond duration and convexity of adding a call feature to a propose...