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For more course tutorials visit www.tutorialrank.com FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide True/False 1.___ ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets. 2.___ ___ Free cash flow = Cash flow from operations – Capital expenditures + Disposition of property and equipment. – PowerPoint PPT presentation

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Title: FIN 402 Teaching Effectively--tutorialrank.com


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FIN 402 Teaching Effectively--tutorialrank.com
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Final Exam Guide (UOP Course) For more
course tutorials visit www.tutorialrank.com FIN
402 Investment Fundamentals and Portfolio
Management Final Exam Guide   True/False  1.___ 
___ The balance sheet shows what assets the firm
controls at a point in time and how it financed
the assets.  
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Capital Markets and
Investment Banking Process Paper (UOP Course) For
more course tutorials visit www.tutorialrank.com F
IN402 Week 1 Assignment Capital Markets and
Investment Banking Process Paper
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 1.2
Preparing Carolyn Bowens Investment Plan For
more course tutorials visit www.tutorialrank.com C
ase Problem 1.2 Preparing Carolyn Bowens
Investment Plan Carolyn Bowen, who just turned
55, is employed as an administrative assistant
for the Xcon Corporation, where she has worked
for the past 20 years. She is in good health,
lives alone, and has two grown children. A few
months ago her husband died, leaving her with
only their home and the proceeds from a 75,000
life insurance policy. After she paid medical and
funeral expens
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 1.2, 2.1,
2.2, 3.1, 12.1 For more course tutorials
visit www.tutorialrank.com FIN 402 Week 1
Assignment Case Problem 1.2 Preparing Carolyn
Bowens Investment Plan FIN 402 Week 1 Assignment
Case Problem 2.1 Daras Dilemma What to Buy? FIN
402 Week 1 Assignment Case Problem 2.2 Ravi
Dumars High-Flying Margin Account FIN 402 Week 1
Assignment Case Problem 3.1 The Perezes Good
Fortune
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 2.2 Ravi
Dumars High-Flying Margin Account For more
course tutorials visit www.tutorialrank.com Case
Problem 2.2 Ravi Dumars High-Flying Margin
Account Ravi Dumar is a stockbroker who lives
with his wife, Sasha, and their five children in
Milwaukee, Wisconsin. Ravi firmly believes that
the only way to make money in the market is to
follow an aggressive investment posturefor
example, to use margin trading. In fact, Ravi
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 3.1 The
Perezes Good Fortune For more course tutorials
visit www.tutorialrank.com Case Problem 3.1 The
Perezes Good Fortune Angel and Marie Perez own a
small pool hall located in southern New Jersey.
They enjoy running the business, which they have
owned for nearly three years. Angel, a retired
professional pool shooter, saved for nearly 10
years to buy this business, which he and his wife
own free and clear. The income from the pool hall
is adequate to allow Angel, Marie, and their
children, Mary (age
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Assignment Case Problem 12.1
Reverend Mark Thomas Ponders Mutual Funds For
more course tutorials visit www.tutorialrank.com C
ase Problem 12.1 Reverend Mark Thomas Ponders
Mutual Funds The Reverend Mark Thomas is the
minister of a church in the San Diego area. He is
married, has one young child, and earns a modest
income. Because religious organizations are not
notorious for their generous retirement programs,
the reverend has decided he should do some
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 AssignmentCase Problem 2.1Daras
Dilemma What to Buy? For more course tutorials
visit www.tutorialrank.com Case Problem 2.1Daras
Dilemma What to Buy? Dara Simmons, a 40-year-old
financial analyst and divorced mother of two
teenage children, considers herself a savvy
investor. She has increased her investment
portfolio considerably over the past five years.
Although she has been fairly conservative with
her investments, she now feels more confident in
her investment knowledge and would like to branch
out into some new areas that could bring higher
returns. She has between 20,000 and 25,000 to
invest.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 DQ 1 (UOP Course) For more course
tutorials visit www.tutorialrank.com What are
capital market instruments? How are they used?
Which is most important? Explain your answer.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 DQ 2 (UOP Course) For more course
tutorials visit www.tutorialrank.com What is an
asset class? How are asset classes selected? What
factors affect the selection?
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 DQ 3 (UOP Course) For more course
tutorials visit www.tutorialrank.com What is a
derivative? What are the different types of
derivatives? How do businesses use derivatives to
mitigate risks?
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Individual Problem Set For more
course tutorials visit www.tutorialrank.com The
Problem Set is provided to you to enable you to
practice the concepts outlined in the textbook.
Select THREE completed problems from the
assignment and post your solutions to those
problems. 1. Creating prices for securities and
allowing for liquidity are functions of 2. Which
of the following best describes the function of
an investment banker selling an issue on a "best
efforts" basis? 3. From the investment banker's
poin
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 1 Individual Weekly Question For
more course tutorials visit www.tutorialrank.com S
ubmit your Weekly Questions, with original
questions, in a Microsoft Word or text file. Be
sure to show your work to earn full credit.Do
not use Investopedia, About.com, Wikipedia, or
other generic internet websites as sources. Use
credible sources only. Also, do not use quotes in
lieu of a res
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Asset Classes Paper
(UOP Course) For more course tutorials
visit www.tutorialrank.com FIN402  Week 2 
Assignment Asset Classes Paper
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 2.1
Traditional Versus Modern Portfolio Theory Whos
Right For more course tutorials
visit www.tutorialrank.com Case
Problem 2.1 Traditional Versus Modern Portfolio
Theory Whos Right? Walt Davies and Shane
OBrien are district managers for Lee, Inc. Over
the years, as they moved through the firms sales
organization, they became (and still remain)
close friends. Walt, who is 33 years old,
currently lives in Princeton, New Jersey. Shane,
who is 35, lives in Houston, Texas. Recently, at
the national sales meeting, they were discussing
various company matters, as well as bringing eac
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.1
Coatess Decision For more course tutorials
visit www.tutorialrank.com Case
Problem 4.1 Coatess Decision On January 1, 2017,
Dave Coates, a 23-year-old mathematics teacher at
Xavier High School, received a tax refund of
1,100. Because Dave didnt need this money for
his current living expenses, he decided to make a
long-term investment. After surveying a number of
alternative investments costing no more than
1,100, Dave isolated two that seemed most
suitable to his needs.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.1, 4.2,
2.1, 5.2, 13.1 (Part a,b,c,d) For more course
tutorials visit www.tutorialrank.com FIN 402 Week
2 Assignment Case Problem 4.1 Coatess
Decision FIN 402 Week 2 Assignment Case Problem
4.2 The Risk-Return Tradeoff Molly ORourkes
Stock Purchase Decision FIN 402 Week 2 Assignment
Case Problem
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 4.2 The
Risk-Return Tradeoff Molly ORourkes Stock
Purchase Decision For more course tutorials
visit www.tutorialrank.com Case Problem 4.2 The
Risk-Return Tradeoff Molly ORourkes Stock
Purchase Decision Over the past 10 years, Molly
ORourke has slowly built a diversified portfolio
of common stock. Currently her portfolio includes
20 different common stock issues and has a total
market value of 82,50
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 5.2 Susan
Lussiers Inherited Portfolio Does It Meet Her
Needs For more course tutorials
visit www.tutorialrank.com Case Problem 5.2 Susan
Lussiers Inherited Portfolio Does It Meet Her
Needs? Susan Lussier is 35 years old and employed
as a tax accountant for a major oil and gas
exploration company. She earns nearly 135,000 a
year from her salary and from participation in
the companys drilling activities. An expert on
oil and gas taxation, she is not worried about
job securityshe is content with her income and
finds it adequate to allow her to buy and do
whatever she
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Assignment Case Problem 13.1
Assessing the Stalcheckss Portfolio Performance
(Part a,b,c,d) For more course tutorials
visit www.tutorialrank.com Case Problem 13.1
Assessing the Stalcheckss Portfolio
Performance Mary and Nick Stalcheck have an
investment portfolio containing four investments.
It was developed to provide them with a balance
between current income and capital appreciation.
Rather than acquire mutual fund shares or
diversify within a given class of investments,
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 DQ 1 (UOP Course) For more course
tutorials visit www.tutorialrank.com What are
different ratio categories? Which category is
most important to bondholders? Why? Which
category is most important to stockholders? Why?
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 DQ 2 (UOP Course) For more course
tutorials visit www.tutorialrank.com What are
liquidity ratios? Why are they important? How may
an investor use liquidity ratios when making
investment decisions?
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 DQ 3 (UOP Course) For more course
tutorials visit www.tutorialrank.com What is the
CAPM? Are CAPM assumptions realistic? Why or why
not?
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Learning Team Assignment
Portfolio Selection Paper (2 Papers) For more
course tutorials visit www.tutorialrank.com This
Tutorial contains 2 Different Papers   Resources 
Electronic Reserve Readings, Internet, University
Library Select one publicly traded
bond. Select five organizations from the
following list. These organizations represent the
stocks that comprise your portfolio.
26
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 weekly Problem Set For more
course tutorials visit www.tutorialrank.com The
Problem Set is provided to you to enable you to
practice the concepts outlined in the textbook.
Select THREE completed problems from the
assignment and post your solutions to those
problems. In your solutions, provide an
explanation as to why you choose the answer. 1.
If RF  6 percent, b  1.3, and the ERP 6.5
percent, com
27
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 2 Weekly Question For more course
tutorials visit www.tutorialrank.com 1.      (2
point) Calculate the expected return of the
following stocks using CAPM. You can use internet
websites to get Beta figures, such as Yahoo!
Finance, Google Finance, MSN Money, Marketwatch,
etc. Use 4 as the risk free rate and 6 as the
risk premium.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Assignment Case Problem 6.1 Sara
Decides to Take the Plunge For more course
tutorials visit www.tutorialrank.com Case
Problem 6.1 Sara Decides to Take the Plunge Sara
Thomas is a child psychologist who has built a
thriving practice in her hometown of Boise,
Idaho. Over the past several years she has been
able to accumulate a substantial sum of money.
She has worked long and hard to be successful,
but she never imagined anything like this. Even
so, success has not spoiled Sara. Still single,
she keeps to her old circle of friends. One of
her closest friends is Terry Jenkins, who happens
to be a stockbroker and who acts as Saras
financial advisor.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Assignment Case Problem 6.1, 6.2,
7.1, 7.2, 8.1, 8.2, 9.2 For more course tutorials
visit www.tutorialrank.com FIN 402 Week 3
Assignment Case Problem 6.1 Sara Decides to Take
the Plunge   FIN 402 Week 3 Assignment Case
Problem 6.2 Wally Wonders Whether Theres a Place
for Dividends  
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Assignment Relative Performance
Paper (UOP Course) For more course tutorials
visit www.tutorialrank.com FIN 402 Week 3
Assignment Relative Performance Paper (UOP Course)
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 6.2 Wally
Wonders Whether Theres a Place for Dividends For
more course tutorials visit www.tutorialrank.com C
ase Problem 6.2 Wally Wonders Whether Theres a
Place for Dividends Wally Wilson is a commercial
artist who makes a good living by doing freelance
workmostly layouts and illustrationsfor local
ad agencies and major institutional clients (such
as large department stores). Wally has been
investing in the stock market for some time,
buying mostly hig
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 7.1 Some
Financial Ratios Are Real Eye-Openers For more
course tutorials visit www.tutorialrank.com Case
Problem 7.1 Some Financial Ratios Are Real
Eye-Openers Jack Arnold is a resident of Lubbock,
Texas, where he is a prosperous rancher and
businessman. He has also built up a sizable
portfolio of common stock, which, he believes, is
due to the fact that he thoroughly evaluates each
stock he invests in. As Jack says, You cant be
too careful about these things! Anytime I plan to
invest in a stock,
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 7.2 Doris
Looks at an Auto Issue For more course tutorials
visit www.tutorialrank.com Case Problem 7.2 Doris
Looks at an Auto Issue Doris Wise is a young
career woman. She lives in Phoenix, Arizona,
where she owns and operates a highly successful
modeling agency. Doris manages her modest but
rapidly growing investment portfolio, made up
mostly of high-grade common stocks. Because shes
young and single and has no pressing family
requirements, Doris has invested primarily in
stocks that offer the potenti
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 8.1 Chris
Looks for a Way to Invest His Wealth For more
course tutorials visit www.tutorialrank.com Case
Problem 8.1 Chris Looks for a Way to Invest His
Wealth Chris Norton is a young Hollywood writer
who is well on his way to television
superstardom. After writing several successful
television specials, he was recently named the
head writer for one of TVs top-rated sitcoms.
Chris fully realizes that his business is a
fickle one, and on the advice of his dad and
manager, he has decided to set up an investment
program. Chris will earn about a half-
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 8.2 An
Analysis of a High-Flying Stock For more course
tutorials visit www.tutorialrank.com Case
Problem 8.2 An Analysis of a High-Flying
Stock Marc Dodier is a recent university graduate
and a security analyst with the Kansas City
brokerage firm of Lippman, Brickbats, and Shaft.
Marc has been following one of the hottest issues
on Wall Street, CI Medical Supplies, a company
that has turned in an outstanding
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 AssignmentCase Problem 9.2 Deb
Takes Measure of the Market Click Here to Buy the
Tutorial For more course tutorials
visit www.tutorialrank.com Case Problem 9.2 Deb
Takes Measure of the Market Several months ago,
Deb Forrester received a substantial sum of money
from the estate of her late aunt. Deb initially
placed the money in a savings account because she
was not sure what to do with it. Since then,
however, she has taken a course in investments at
the
37
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 DQ 1 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com What is the difference
between systematic and unsystematic risk? How is
the beta coefficient used to assess risk? Is it
better to maximize return or minimize risk? Why?
38
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 DQ 2 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com What is the
relationship between inflation and interest
rates? How does this relationship affect asset
prices? How does the unemployment rate affect
interest rates?
39
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 DQ 3 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com What factors must be
taken into consideration when creating an
investment portfolio? How must a portfolios
components be weighted?  aa
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Individual Assignment CAPM Web
Exercise (UOP Course) Click Here to Buy the
Tutorial For more course tutorials
visit www.tutorialrank.com FIN 402 Week 3
Individual Assignment CAPM Web Exercise ResourceF
undamentals of Investment Management Prepare a
response to the following assignment Web
Exercise (Ch. 21) of Fundamentals of Investment
Management, including calculations for each
organization listed in Step 9  
41
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Weekly Problem Set Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com The Problem Set is
provided to you to enable you to practice the
concepts outlined in the textbook. Select THREE
completed problems from the assignment and post
your solutions to those problems. In your
solutions, provide an explanation as to why you
choose the answer.
42
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 3 Weekly Question Click Here to Buy
the Tutorial For more course tutorials
visit www.tutorialrank.com Submit your Weekly
Questions, with original questions, in a
Microsoft Word or text file. Be sure to show your
work to earn full credit. 1.      (2 point) Use
the expected return and Beta calculated in Week 2
Homework Questions 1 for the stocks listed PG,
Microsoft, Macys, JP Morgan C
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 10.1 Max
and Veronica Develop a Bond Investment
Program Click Here to Buy the Tutorial For more
course tutorials visit www.tutorialrank.com Case
Problem 10.1 Max and Veronica Develop a Bond
Investment Program Max and Veronica Shuman, along
with their teenage sons, Terry and Thomas, live
in Portland, Oregon. Max is a sales rep for a
major medical firm, and Veronica is a personnel
officer at a local bank. Together they earn an
annual income of around 100,000. Max has just
learned that his recently departed rich uncle has
named him in his will to the tune of some
250,000 after taxes. Needless to say
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FIN 402 Teaching Effectively--tutorialrank.com
  FIN 402 Week 4 Assignment Case Problem 10.1,
10.2, 11.1, 11.2 Click Here to Buy the
Tutorial For more course tutorials
visit www.tutorialrank.com FIN 402 Week 4
Assignment Case Problem 10.1 Max and Veronica
Develop a Bond Investment Program FIN 402 Week 4
Assignment Case Problem 10.2 The Case of the
Missing Bond Ratings FIN 402 Week 4 Assignment
Case Problem 11.1 The Bond Investment Decisions
of Dave and Marlene Carter FIN 402 Week 4
Assignment Case Problem 11.2 Grace Decides to
Immunize Her Portfolio  
45
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 10.2 The
Case of the Missing Bond Ratings Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com Case Problem 10.2 The
Case of the Missing Bond Ratings Its probably
safe to say that theres nothing more important
in determining a bonds rating than the
underlying financial condition and operating
results of the company issuing the bond. Just as
financial ratios can be used in the analysis of
common stocks, they can also be used in the
analysis of bondsa process we refer to as credit
analysis. In credit analysis, attention is
directed toward the basic liquidity and
profitability of the firm, the extent to which
the firm employs debt, and the ability of the
firm to service its debt.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 11.1 The
Bond Investment Decisions of Dave and Marlene
Carter Click Here to Buy the Tutorial For more
course tutorials visit www.tutorialrank.com Case
Problem 11.1 The Bond Investment Decisions of
Dave and Marlene Carter Dave and Marlene Carter
live in the Boston area, where Dave has a
successful orthodontics practice. Dave and
Marlene have built up a sizable investment
portfolio and have always had a major portion of
their investments in fixed-income securities.
They adhere to a fairly aggressive investm
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Assignment Case Problem 11.2
Grace Decides to Immunize Her Portfolio Click
Here to Buy the Tutorial For more course
tutorials visit www.tutorialrank.com Case
Problem 11.2 Grace Decides to Immunize Her
Portfolio Grace Hesketh is the owner of an
extremely successful dress boutique in downtown
Chicago. Although high fashion is Graces first
love, shes also interested in investments,
particularly bonds and other fixed-income
securities. She actively manages her own
investments and over time has built up a
substantial portfolio of securities. Shes well
versed on the latest investment techniques and is
not afraid to apply those procedures to her own
investments.
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 DQ 1 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com What are examples of
active and passive portfolio management
techniques? Why would a portfolio manager pursue
active instead of passive techniques?
49
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 DQ 2 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com Does international
diversification enhance risk reduction? Why or
why not? What measures may be taken to reduce
risks of international portfolio investing?
50
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 DQ 3 (UOP Course) Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com What are unique risks
associated with foreign investments? How might an
investor protect his or her portfolio against
such risks? Is it possible to protect a portfolio
from all risk?
51
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Individual Assignment Risk and
Return Tradeoff Memo (2 Papers) Click Here to Buy
the Tutorial For more course tutorials
visit www.tutorialrank.com This Tutorial contains
2 Different Papers   FIN 402 Week 4 Individual
Assignment Risk and Return Tradeoff
Memo Resources Constructing and Managing a
Portfolio Simulation, Electronic Reserve
Readings, University Library Complete the
Constructing and Managing a Portfolio simulation
on the student website. Conduct research
concerning the risk and return tradeo
52
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Learning Team Assignment Risk and
Return Analysis Paper (Portfolio Risk
Analysis) Click Here to Buy the Tutorial For more
course tutorials visit www.tutorialrank.com FIN
402 Week 4 Learning Team Assignment Risk and
Return Analysis Paper Complete the following
activities Conduct a risk assessment and return
analysis on the investment vehicles in your
portfolio. Select the weights of each vehicle in
your portfolio for example, the percentage of
the portfolio each vehicle makes up.
53
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Weekly Problem Set Click Here to
Buy the Tutorial For more course tutorials
visit www.tutorialrank.com The Problem Set is
provided to you to enable you to practice the
concepts outlined in the textbook. Select THREE
completed problems from the assignment and post
your solutions to those problems. 1. The weak
form of the EMH states that ________ must be
reflected in the current stock price. 2. When
the market risk premium rises, stock prices will
________. 3. Proponents of the EMH typically
advocate __________. 4. Choosing stocks by
searching for predictable patterns in stock
prices is called 5. In a recent study, Fama and
French found that the return on the aggregate
stock market was __________ when the dividend
yield was higher. 
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 4 Weekly Question Click Here to Buy
the Tutorial For more course tutorials
visit www.tutorialrank.com 1.      (2 point) Go
to Morningstar.com. Find the listed mutual funds
profiles on the website. Under Ratings Risk,
find and submit the Sharpe Ratio for each fund.
Then discuss, using the ratio, which fund you
believe provides a better investment. Funds
            ARTVX
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 14.1 The
Franciscos Investment Options Cll For more
course tutorials visit www.tutorialrank.com Case
Problem 14.1 The Franciscos Investment
Options Hector Francisco is a successful
businessman in Atlanta. The box-manufacturing
firm he and his wife, Judy, founded several years
ago has prospered. Because he is self-employed,
Hector is building his own retirement fund. So
far, he has accumulated a substantial sum in his
investment account, mostly by following an
aggressive investment posture. He does this
because, as he puts it,
56
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 14.1,
14.2, 15.1, 15.2 Click Here to Buy the
Tutorial For more course tutorials
visit www.tutorialrank.com FIN 402 Week 5
Assignment Case Problem 14.1 The Franciscos
Investment Options FIN 402 Week 5 Assignment Case
Problem 14.2 Lukes Quandary To Hedge or Not to
Hedge
57
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 14.2
Lukes Quandary To Hedge or Not to Hedge Click
Here to Buy the Tutorial For more course
tutorials visit www.tutorialrank.com Case
Problem 14.2 Lukes Quandary To Hedge or Not to
Hedge A little more than 10 months ago, Luke
Weaver, a mortgage banker in Phoenix, bought 300
shares of stock at 40 per share. Since then, the
price of the stock has risen to 75 per share. It
is now near the end of the year, and the market
is starting to weaken. Luke feels there is still
plenty of play left in the stock but is afraid
the tone of the
58
FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 15.1 T.
J.s Fast-Track Investments Interest Rate
Futures Click Here to Buy the Tutorial  For more
course tutorials visit www.tutorialrank.com Case
Problem 15.1 T. J.s Fast-Track Investments
Interest Rate Futures T. J. Patrick is a young,
successful industrial designer in Portland,
Oregon, who enjoys the excitement of commodities
speculation. T. J. has been dabbling in
commodities since he was a teenagerhe was
introduced to this market by his dad, who is a
grain buyer for one of the leading
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FIN 402 Teaching Effectively--tutorialrank.com
FIN 402 Week 5 Assignment Case Problem 15.2 Jim
and Polly Pernelli Try Hedging with Stock Index
Futures Click Here to Buy the Tutorial For more
course tutorials visit www.tutorialrank.com Case
Problem 15.2 Jim and Polly Pernelli Try Hedging
with Stock Index Futures Jim Pernelli and his
wife, Polly, live in Augusta, Georgia. Like many
young couples, the Pernellis are a two-income
family. Jim and Polly are both college graduates
and hold high-paying jobs. Jim has been an avid
investor in the stock market for a number of
years and over time has built up a portfolio that
is currently worth nearly 375,000. The
Pernellis portfolio is well diversified,
although it i
60
FIN 402 Teaching Effectively--tutorialrank.com
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