Questions from General Investment

Q: Donna Doni, CFA, wants to explore potential inefficiencies in the

Donna Doni, CFA, wants to explore potential inefficiencies in the futures market. The TOBEC stock index has a spot value of 185. TOBEC futures contracts are settled in cash and underlying contract val...

Q: Suppose your client says, “I am invested in Japanese stocks

Suppose your client says, “I am invested in Japanese stocks but want to eliminate my exposure to this market for a period of time. Can I accomplish this without the cost and inconvenience of selling o...

Q: René Michaels, CFA, plans to invest $1 million in

René Michaels, CFA, plans to invest $1 million in U.S. government cash equivalents for the next 90 days. Michaels’s client has authorized her to use nonâ€...

Q: After studying Iris Hamson’s credit analysis, George Davies is considering whether

After studying Iris Hamson’s credit analysis, George Davies is considering whether he can increase the holding-period return on Yucatan Resort’s excess cash holding...

Q: Janice Delsing, a U.S.-based portfolio manager,

Janice Delsing, a U.S.-based portfolio manager, manages an $800 million portfolio ($600 million in stocks and $200 million in bonds). In reaction to anticipated short-term market events, Delsing wishe...

Q: You are provided the information outlined as follows to be used in

You are provided the information outlined as follows to be used in solving this problem. Situation A A fixed-income manager holding a $20 million market value position of U.S. Treasury 11Â&frac3...

Q: You ran a regression of the yield of KC Company’s 10-

You ran a regression of the yield of KC Company’s 10-year bond on the 10-year U.S. Treasury benchmark’s yield using month-end data for the past year. You found the following result: YieldKC = 0.54 + 1...

Q: You and a prospective client are considering the measurement of investment performance

You and a prospective client are considering the measurement of investment performance, particularly with respect to international portfolios for the past five years. The data you discussed are presen...

Q: a. Footnote 7 presents the formula for the convexity of a

a. Footnote 7 presents the formula for the convexity of a bond. Build a spreadsheet to calculate the convexity of a 5-year, 8% coupon bond making annual payments at the initial yield to maturity of 10...

Q: During the annual review of Acme’s pension plan, several trustees questioned

During the annual review of Acme’s pension plan, several trustees questioned their investment consultant about various aspects of performance measurement and risk assessment. a. Comment on the appropr...