Questions from General Investment

Q: Briefly describe the dividend valuation model and the three versions of this

Briefly describe the dividend valuation model and the three versions of this model. Explain how CAPM fits into the DVM.

Q: You are considering purchasing a bond that pays annual interest of $

You are considering purchasing a bond that pays annual interest of $50 per $1,000 of par value. The bond matures in one year, and at that time you will collect the par value and the interest payment....

Q: What is the difference between the variable-growth dividend valuation model

What is the difference between the variable-growth dividend valuation model and the free cash flow to equity approach to stock valuation? Which procedure would work better if you were trying to value...

Q: How would you go about finding the expected return on a stock

How would you go about finding the expected return on a stock? Note how such information would be used in the stock selection process.

Q: Briefly describe the P/E approach to stock valuation, and

Briefly describe the P/E approach to stock valuation, and note how this approach differs from the variable-growth DVM. Describe the P/CF approach and note how it is used in the stock valuation process...

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?

Q: Describe each of the following, and note how it is computed

Describe each of the following, and note how it is computed and used by technicians: a. Advance-decline lines b. Arms index c. On-balance volume d. Relative strength index e. Moving averages

Q: What is a stock chart? What kind of information can be

What is a stock chart? What kind of information can be put on charts, and what is the purpose of charting?

Q: Explain why it is difficult, if not impossible, to consistently

Explain why it is difficult, if not impossible, to consistently outperform an efficient market. a. Does this mean that high rates of return are not available in the stock market? b. How can an investo...

Q: What are market anomalies, and how do they come about?

What are market anomalies, and how do they come about? Do they support or refute the EMH? Briefly describe each of the following: a. The January effect b. The size effect c. The value effect