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FIN 402 MASTER Modern Education--fin402master.com

FOR MORE CLASSES VISIT<br>www.fin402master.com<br><br>FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide<br> <br>True/False<br> 1.___ ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets.<br>

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FIN 402 MASTER Modern Education--fin402master.com

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  1. FIN 402 MASTER Modern Education--fin402master.com

  2. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Final Exam Guide FOR MORE CLASSES VISIT www.fin402master.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.

  3. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 Assignment Capital Markets and Investment Banking Process Paper • FOR MORE CLASSES VISIT • www.fin402master.com • FIN402 Week 1 Assignment Capital Markets and Investment Banking Process Paper

  4. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 1 Assignment Case Problem 1.2 Preparing Carolyn Bowen’s Investment Plan FOR MORE CLASSES VISIT www.fin402master.com Case Problem 1.2 Preparing Carolyn Bowen’s 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

  5. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 Assignment Case Problem 1.2, 2.1, 2.2, 3.1, 12.1 • FOR MORE CLASSES VISIT • www.fin402master.com • FIN 402 Week 1 Assignment Case Problem 1.2 Preparing Carolyn Bowen’s Investment Plan FIN 402 Week 1 Assignment Case Problem 2.1 Dara’s Dilemma: What to Buy? FIN 402 Week 1 Assignment Case Problem 2.2 Ravi Dumar’s High-Flying Margin Account FIN 402 Week 1 Assignment Case Problem 3.1 The Perezes’ Good Fortune FIN 402 Week 1 Assignment Case Problem 12.1 Reverend Mark Thomas Ponders Mutual Funds

  6. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 1 Assignment Case Problem 2.2 Ravi Dumar’s High-Flying Margin Account FOR MORE CLASSES VISIT www.fin402master.com Case Problem 2.2 Ravi Dumar’s 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 posture—for example, to use margin trading. In fact, Ravi has built himself a

  7. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 1 Assignment Case Problem 3.1 The Perezes’ Good Fortune FOR MORE CLASSES VISIT www.fin402master.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

  8. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 1 Assignment Case Problem 12.1 Reverend Mark Thomas Ponders Mutual Funds FOR MORE CLASSES VISIT www.fin402master.com Case 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

  9. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 1 AssignmentCase Problem 2.1Dara’s Dilemma: What to Buy? FOR MORE CLASSES VISIT www.fin402master.com Case Problem 2.1Dara’s 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

  10. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 DQ 1 • FOR MORE CLASSES VISIT • www.fin402master.com • What are capital market instruments? How are they used? Which is most important? Explain your answer.

  11. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 DQ 2 • FOR MORE CLASSES VISIT • www.fin402master.com • What is an asset class? How are asset classes selected? What factors affect the selection?

  12. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 DQ 3 • FOR MORE CLASSES VISIT • www.fin402master.com • What is a derivative? What are the different types of derivatives? How do businesses use derivatives to mitigate risks?

  13. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 Individual Problem Set • FOR MORE CLASSES VISIT • www.fin402master.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

  14. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 1 Individual Weekly Question • FOR MORE CLASSES VISIT • www.fin402master.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. • Do not use Investopedia, About.com, Wikipedia, or other generic internet websites as sources. Use credible sources only.

  15. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 Assignment Asset Classes Paper • FOR MORE CLASSES VISIT • www.fin402master.com • FIN402 Week 2 Assignment Asset Classes Paper

  16. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 Assignment Case Problem 2.1 Traditional Versus Modern Portfolio Theory Who’s Right FOR MORE CLASSES VISIT www.fin402master.com Case Problem 2.1 Traditional Versus Modern Portfolio Theory: Who’s Right? Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they moved through the firm’s 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

  17. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 Assignment Case Problem 4.1 Coates’s Decision FOR MORE CLASSES VISIT www.fin402master.com Case Problem 4.1 Coates’s 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 didn’t 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

  18. FIN 402 MASTER Modern Education--fin402master.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 CLASSES VISIT • www.fin402master.com • FIN 402 Week 2 Assignment Case Problem 4.1 Coates’s Decision FIN 402 Week 2 Assignment Case Problem 4.2 The Risk-Return Tradeoff Molly O’Rourke’s Stock Purchase Decision FIN 402 Week 2 Assignment Case Problem 2.1 Traditional Versus Modern Portfolio Theory Who’s Right FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’s Inherited Portfolio Does It Meet Her Needs FIN 402 Week 2 Assignment Case Problem 13.1 Assessing the Stalchecks’s Portfolio Performance (Part a,b,c,d)

  19. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 Assignment Case Problem 4.2 The Risk-Return Tradeoff Molly O’Rourke’s Stock Purchase Decision FOR MORE CLASSES VISIT www.fin402master.com Case Problem 4.2 The Risk-Return Tradeoff: Molly O’Rourke’s Stock Purchase Decision Over the past 10 years, Molly O’Rourke 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 $82,500. Molly is at present considering the addition of 50 shares of either of two common stock issues—X or Y. To assess the return and risk of each of these issues, she has gathered dividend income and share price data for both over the

  20. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’s Inherited Portfolio Does It Meet Her Needs FOR MORE CLASSES VISIT www.fin402master.com Case Problem 5.2 Susan Lussier’s 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 company’s drilling activities. An expert on oil and gas taxation, she is not worried about job security—she is content with her income and finds it adequate to allow her to buy and do whatever she wishes. Her current philosophy is to live each day to its fullest, not

  21. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 Assignment Case Problem 13.1 Assessing the Stalchecks’s Portfolio Performance (Part a,b,c,d) FOR MORE CLASSES VISIT www.fin402master.com Case Problem 13.1 Assessing the Stalchecks’s 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.

  22. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 2 DQ 1 FOR MORE CLASSES VISIT www.fin402master.com What are different ratio categories? Which category is most important to bondholders? Why? Which category is most important to stockholders? Why?

  23. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 DQ 2 • FOR MORE CLASSES VISIT • www.fin402master.com • What are liquidity ratios? Why are they important? How may an investor use liquidity ratios when making investment decisions?

  24. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 DQ 3 • FOR MORE CLASSES VISIT • www.fin402master.com • What is the CAPM? Are CAPM assumptions realistic? Why or why not?

  25. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 Learning Team Assignment Portfolio Selection Paper (2 Papers) • FOR MORE CLASSES VISIT • www.fin402master.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. • Cisco Systems, Inc.®

  26. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 weekly Problem Set • FOR MORE CLASSES VISIT • www.fin402master.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.

  27. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 2 weekly Problem Set • FOR MORE CLASSES VISIT • www.fin402master.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. • a. Proctor & Gamble (PG)

  28. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 Assignment Case Problem 6.1 Sara Decides to Take the Plunge FOR MORE CLASSES VISIT www.fin402master.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

  29. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 Assignment Case Problem 6.1, 6.2, 7.1, 7.2, 8.1, 8.2, 9.2 FOR MORE CLASSES VISIT www.fin402master.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 There’s a Place for Dividends FIN 402 Week 3 Assignment Case Problem 7.1 Some Financial Ratios Are Real Eye-Openers FIN 402 Week 3 Assignment Case Problem 7.2 Doris Looks at an Auto

  30. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 3 Assignment Relative Performance Paper • FOR MORE CLASSES VISIT • www.fin402master.com • FIN 402 Week 3 Assignment Relative Performance Paper

  31. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 6.2 Wally Wonders Whether There’s a Place for Dividends FOR MORE CLASSES VISIT www.fin402master.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for 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 high-quality growth stocks as a way to achieve long-term growth and capital appreciation. He feels that with the limited time he has to devote to his security holdings, high-quality

  32. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 7.1 Some Financial Ratios Are Real Eye-Openers FOR MORE CLASSES VISIT www.fin402master.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 can’t be too careful about

  33. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 7.2 Doris Looks at an Auto Issue FOR MORE CLASSES VISIT www.fin402master.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 she’s young and single and has no pressing family requirements, Doris has invested primarily in stocks that offer the potential for attractive capital gains. Her broker recently recommended an auto company stock and sent

  34. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 8.1 Chris Looks for a Way to Invest His Wealth FOR MORE CLASSES VISIT www.fin402master.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 TV’s top-rated sitcoms. Chris fully realizes that his business is a fickle one, and on the advice of his

  35. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 8.2 An Analysis of a High-Flying Stock FOR MORE CLASSES VISIT www.fin402master.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, C&I Medical Supplies, a company that has turned in an outstanding performance lately and, even more important, has exhibited excellent growth potential. It has five million shares outstanding and pays a nominal annual dividend of $0.05 per share. Marc has

  36. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 AssignmentCase Problem 9.2 Deb Takes Measure of the Market FOR MORE CLASSES VISIT www.fin402master.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 local university. The textbook for the

  37. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 3 DQ 1 • FOR MORE CLASSES VISIT • www.fin402master.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 MASTER Modern Education--fin402master.com • FIN 402 Week 3 DQ 2 • FOR MORE CLASSES VISIT • www.fin402master.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 MASTER Modern Education--fin402master.com • FIN 402 Week 3 DQ 3 • FOR MORE CLASSES VISIT • www.fin402master.com • What factors must be taken into consideration when creating an investment portfolio? How must a portfolio’s components be weighted?

  40. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 3 Individual Assignment CAPM Web Exercise • FOR MORE CLASSES VISIT • www.fin402master.com • FIN 402 Week 3 Individual Assignment CAPM Web Exercise • Resource:Fundamentals 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 MASTER Modern Education--fin402master.com • FIN 402 Week 3 Weekly Problem Set • FOR MORE CLASSES VISIT • www.fin402master.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. Which of the following are assumptions of the simple CAPM model? • 2. Consider the CAPM. The risk-free rate is 6% and the expected return on the market is 18%. What is the expected return on a stock with a beta of 1.3?

  42. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 3 Weekly Question FOR MORE CLASSES VISIT www.fin402master.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: P&G, Microsoft, Macy’s, JP Morgan Chase and Southern Company. You will make three portfolios:

  43. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 4 Assignment Case Problem 10.1 Max and Veronica Develop a Bond Investment Program FOR MORE CLASSES VISIT www.fin402master.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

  44. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 4 Assignment Case Problem 10.1, 10.2, 11.1, 11.2 • FOR MORE CLASSES VISIT • www.fin402master.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 MASTER Modern Education--fin402master.com FIN 402 Week 4 Assignment Case Problem 10.2 The Case of the Missing Bond Ratings FOR MORE CLASSES VISIT www.fin402master.com Case Problem 10.2 The Case of the Missing Bond Ratings It’s probably safe to say that there’s nothing more important in determining a bond’s 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

  46. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 4 Assignment Case Problem 11.1 The Bond Investment Decisions of Dave and Marlene Carter FOR MORE CLASSES VISIT www.fin402master.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

  47. FIN 402 MASTER Modern Education--fin402master.com FIN 402 Week 4 Assignment Case Problem 11.2 Grace Decides to Immunize Her Portfolio FOR MORE CLASSES VISIT www.fin402master.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 Grace’s first love, she’s 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. She’s well versed on the latest investment techniques and is not afraid to apply those procedures to her own investments. Grace has been playing

  48. FIN 402 MASTER Modern Education--fin402master.com • FIN 402 Week 4 DQ 1 • FOR MORE CLASSES VISIT • www.fin402master.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 MASTER Modern Education--fin402master.com • FIN 402 Week 4 DQ 2 • FOR MORE CLASSES VISIT • www.fin402master.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 MASTER Modern Education--fin402master.com • FIN 402 Week 4 DQ 3 • FOR MORE CLASSES VISIT • www.fin402master.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?

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