Questions from General Investment

Q: How can behavioral finance have any bearing on investor returns? Do

How can behavioral finance have any bearing on investor returns? Do supporters of behavioral finance believe in efficient markets? Explain.

Q: Briefly explain how behavioral finance can affect each of the following:

Briefly explain how behavioral finance can affect each of the following: a. The trading activity of investors b. The tendency of value stocks to outperform growth stocks c. The tendency of stock price...

Q: Assume you invest $$3,500 today in an investment that

Assume you invest $$3,500 today in an investment that promises to return $7,700 in exactly 10 years. a. Use the present value technique to estimate the IRR on this investment. b. If a minimum annual r...

Q: What is the purpose of technical analysis? Explain how and why

What is the purpose of technical analysis? Explain how and why it is used by technicians; note how it can be helpful in timing investment decisions.

Q: Can the broad market have an effect on the price of individual

Can the broad market have an effect on the price of individual stocks? Explain.

Q: Describe the confidence index, and note the feature that makes it

Describe the confidence index, and note the feature that makes it unique.

Q: Briefly describe each of the following, and explain how it is

Briefly describe each of the following, and explain how it is used in technical analysis: a. Breadth of the market b. Short interest c. Odd-lot trading

Q: What appeal do bonds hold for investors? Give several reasons why

What appeal do bonds hold for investors? Give several reasons why bonds make attractive investment outlets.

Q: Briefly describe each of the following types of bonds: (a

Briefly describe each of the following types of bonds: (a) Treasury bonds, (b) agency issues, (c) municipal securities, and (d) corporate bonds. Note some of the major advantages and disadvantages of...

Q: Briefly define each of the following and note how they might be

Briefly define each of the following and note how they might be used by fixed-income investors: (a) zero-coupon bonds, (b) CMOs, (c) junk bonds, and (d) Yankee bonds.