Questions from General Investment

Q: What is the relation between an investment’s risk and its return?

What is the relation between an investment’s risk and its return?

Q: Define the term risk, and explain how risk is used to

Define the term risk, and explain how risk is used to differentiate among investments.

Q: What are foreign investments, and what role do they play for

What are foreign investments, and what role do they play for the individual investor?

Q: The risk-free rate is 3%, and expected inflation is

The risk-free rate is 3%, and expected inflation is 2.5%. If inflation expectations change such that future expected inflation falls to 1.5%, what will the new risk-free rate be?

Q: Describe the structure of the overall investment process. Explain the role

Describe the structure of the overall investment process. Explain the role played by financial institutions and financial markets.

Q: Scandals involving fraudulent accounting practices resulted in public outrage, not only

Scandals involving fraudulent accounting practices resulted in public outrage, not only in the United States but around the world as well. In December 2013, the SEC charged Fifth Third Bank of Cincin...

Q: Buy, sell, or hold? Should investors trust and act

Buy, sell, or hold? Should investors trust and act on the investment recommendations of professional securities analysts? The evidence is somewhat mixed. Consider that from 1993 to 2015, about 55% of...

Q: Before it was known for its financial problems, Enron, a

Before it was known for its financial problems, Enron, a utility firm operating pipelines and shipping natural gas, was a business pioneer, blazing new trails in the market for trading risk. In the 19...

Q: In recent years, business headlines were full of allegations of massive

In recent years, business headlines were full of allegations of massive financial fraud committed by prominent business leaders. These allegations shocked the investment community and resulted in spec...

Q: In March 2018 a federal jury convicted San Diego stockbroker Paul Rampoldi

In March 2018 a federal jury convicted San Diego stockbroker Paul Rampoldi of insider trading because he used information he obtained from a director at Ardea Biosciences about that firm’s upcoming (a...