Questions from General Investment

Q: John Irish, CFA, is an independent investment adviser who is

John Irish, CFA, is an independent investment adviser who is assisting Alfred Darwin, the head of the Investment Committee of General Technology Corporation, to establish a new pension fund. Darwin as...

Q: Sandra Kapple presents Maria VanHusen with a description, given in the

Sandra Kapple presents Maria VanHusen with a description, given in the following exhibit, of the bond portfolio held by the Star Hospital Pension Plan. All securities in the bond portfolio are noncall...

Q: You are a U.S. investor considering purchase of one

You are a U.S. investor considering purchase of one of the following securities. Assume that the currency risk of the Canadian government bond will be hedged, and the six-month discount on Canadian do...

Q: A global manager plans to invest $1 million in U.

A global manager plans to invest $1 million in U.S. government cash equivalents for the next 90 days. However, she is also authorized to use non-U.S. government cash equivalents, as long as the curren...

Q: The Windsor Foundation, a U.S.-based, not

The Windsor Foundation, a U.S.-based, not-for-profit charitable organization, has a diversified investment portfolio of $100 million. Windsor’s board of directors is considering an initial investment...

Q: After much research on the developing economy and capital markets of the

After much research on the developing economy and capital markets of the country of Otunia, your firm, GAC, has decided to include an investment in the Otunia stock market in its Emerging Markets Comm...

Q: You are P. J. Walter, CFA, a managing

You are P. J. Walter, CFA, a managing partner of a prestigious investment counseling firm that specializes in individual rather than institutional accounts. The firm has developed a national reputatio...

Q: Several discussion meetings have provided the following information about one of your

Several discussion meetings have provided the following information about one of your firm’s new advisory clients, a charitable endowment fund recently created by means of a one-time $10 million gift:...

Q: You have been named as investment adviser to a foundation established by

You have been named as investment adviser to a foundation established by Dr. Walter Jones with an original contribution consisting entirely of the common stock of Jomedco, Inc. Founded by Dr. Jones, J...

Q: Your client says, “With the unrealized gains in my portfolio

Your client says, “With the unrealized gains in my portfolio, I have almost saved enough money for my daughter to go to college in eight years, but educational costs keep going up.” Based on this stat...