Question 1 (2 points)

Focus

The components of interest rate risk are price risk and maturity risk.

Question 1 options:

Question 2 (2 points)

A bond portfolio is immunized from interest rate risk if the modified duration of the portfolio is always equal to the desired investment horizon.

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Question 3 (2 points)

There can be only one zero-beta portfolio.

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Question 4 (2 points)

The bond management strategy intended to eliminate interest rate risk is immunization.

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Question 5 (2 points)

Studies have shown the beta is more stable for portfolios than for individual securities.

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Question 6 (2 points)

In a ladder strategy, which of the following is correct? Select one.

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Question 7 (2 points)

The fact that tests have shown the CAPM intercept to be greater than the RFR is consistent with which of the following? Select one.

Question 7 options:

Question 8 (2 points)

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Exhibit 13.13: Consider two bonds, both pay annual interest. Bond Y has a coupon of 6% per year, maturity of five years, yield to maturity of 6% per year, and a face value of $1000. Bond X has a coupon of 7% per year, maturity of 10 years, yield to maturity of 4% per year, and a face value of $1000.

Refer to Exhibit 13.13. Assume that your investment horizon is five years, and your portfolio consists only of Bond Y and Bond X. Indicate the proportions invested in each bond, so that the portfolio is immunized.

Question 8 options:

Question 9 (2 points)

Coupon reinvestment risk arises because the yield to maturity computation implicitly assumes that all coupon flows will be reinvested at the _______. Select one.

Question 9 options:

Question 10 (2 points)

Which factors indicate that in-depth credit analysis of high-yield bonds is important? Select one.

Question 10 options:

Part One

To use this template, you will first select one option from the list provided in the Module Three Activity Guidelines and Rubric. Address each of the rubric criteria listed below with a minimum of 3 to 5 sentences per bullet. Support your answers with a credible source when necessary.

• Describe the possible biological causes of your selection.

[Insert text]

• Describe the possible psychological causes of your selection.

[Insert text]

• Describe the possible social and cultural causes of your selection.

[Insert text]

• Describe the relationship between the biological, psychological, and sociocultural factors of your selection.

[Insert text]

Part Two

• Next, from the list, you will select two options that are known to share symptomatology or behaviors. In a minimum of 3 to 5 sentences, explain the ways in which the behaviors associated with the disorders overlap and discuss the potential diagnostic challenges presented by the overlap.

[Insert text]

Project Outline

Financial planning is a technique for making the most of one’s current financial resources through a well-organized management plan that will help one achieve their unique goals. For the majority of people, achieving good financial planning has been challenging due to a variety of issues, including inadequate planning, impulsive spending, indecision about finances, bad debt management, and inefficient saving and investing methods, among others. Due to these challenges, bad financial decisions are made, leaving little or no money for recreation and basic requirements.

The proposed project entails the creation of a personal financial planner mobile application that makes use of machine learning and artificial intelligence technologies. It will include budgeting for necessities, unforeseen expenses, leisure, debt management, and savings in addition to effectively providing financial predictions and suggestions to the user based on the user’s income, spending, and savings. This data will be modelled in order to offer insights on how to better arrange financial resources, saving methods, and recommendations on leisure activities like vacation spots that the user can afford to visit based on a determined budget from the model. To meet its functional objectives, the proposed system’s design would make use of descriptive and predictive analysis.

References

Predictive vs. prescriptive analytics. Ohio University. (2022, July 29). Retrieved November 6, 2022, from https://onlinemasters.ohio.edu/blog/predictive-vs-prescriptive-analytics-whats-the-difference/

Billingsley, R. (2020). Personal Financial Planning. CENGAGE LEARNING.

Question 1 (2 points)

Focus

Returns from the overall market (or an individual stock) can be thought of as a combination of three factors: earnings growth, multiple expansion (or contraction), and dividend yield.

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Question 2 (2 points)

Future tax rates are difficult to estimate because they are politically influenced.

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Question 3 (2 points)

If the intrinsic value of an asset is greater than the market price, you would want to buy the investment.

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Question 4 (2 points)

According to Peter Lynch, a favorable attribute of a firm that may result in favorable stock performance is when a firm’s product is the latest craze.

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Question 5 (2 points)

Interest rate spread, 10-year Treasury bonds less federal funds, is listed as a lagging indicator in the Conference Board.

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Question 6 (2 points)

Which of the following is a market tenet of Warren Buffett? Select one.

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Question 7 (2 points)

The two questions when assessing the performance measurement of an investment manager include which of the following? Select one.

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Question 8 (2 points)

Issues that provide funds to retire another issue early are known as what? Select one.

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Question 9 (2 points)

When a bond issue is secured by a legal claim on equipment it is known as which of the following? Select one.

Question 9 options:

Question 10 (2 points)

Which bond provision would be considered the riskiest for an investor who is concerned that market interest rates will drop dramatically over the life of the bond? Select one.

Question 10 options:

Question 1
Suppose you were the recipient of an annuity for coming in second place in a beauty contest. The annuity pays you $6,000 per year for the rest of your life. However, you decide that “It’s my money and I need it now!”, and you want to sell the financial instrument.
a) What is the fair market value of the annuity if the market interest rate is 7.50%?
b) What is the fair market value of the annuity if the market interest rate were 3.25% instead?
Question 2
Suppose you are having lunch with your friend, and he drunkenly declares that he will give you $250,000 in ten (10) years. You take him up on his offer, but instead, say you will take the present value of that money today.
a) If the interest rate is 12%, how much will your friend have to pay you today?
b) If the interest rate is 2.75% instead, how much will your friend have to pay you today?
Question 3
Suppose you enter into a tournament to play Quidditch against other teams. In order for you to play, you must pay $3,750 today to the organization that hosts the tournament. The top prize for winning is structured so that you will receive $6,500 one year from now, $4,250 three years from now, $2,500 five years from now, and $9,125 seven years from now.
a) If the market interest rate is 5%, what is the present value of this stream of payments? Draw the timeline when providing your calculations, as well.
b) What is the net present value if you win the tournament? Would this be considered a good, bad, or neutral deal for you? Explain your reasoning.

As you are remediating, type into a word document all the questions you answered incorrectly. You must type out the full Kaplan question and the answer options.  Failure to do so will result in not achieving credit for this assignment.  After typing each question, then write one paragraph total or bullet points addressing the four topics below.  Failure to address the four topics will result in not achieving credit for this assignment.

-What is the specific identified topic of the Kaplan question? -Narrow this answer to 3-4 words.

-What is the rationale behind the correct answer?

-What is the reason the other three answer options are incorrect?

-What is the reason you answered the question incorrectly?  For example, misidentified the topic, did not know content, misread question

If you answered incorrectly a question from the case study section, you only need to type that specific question.  You do not need to type the entire case study.

Upload your word document onto the CCLE class website under “Kaplan Remediation Written Assignment Submission.” Upload as a word document and not PDF or JPEG. Be sure to include your name on the document and to save your document as “Name, Kaplan FRT, Physical Assessment”

So quick summary- The written word document remediation is only for questions you answered incorrectly.

1. Content (70 points)

Include the following information about the company:

• General information about the company and its history
• Business category, markets, and products
• Size (revenue, rankings), number of employees, major locations, headquarters, major divisions
• Mission statement (if available) and general company objectives/goals; ESG strategy
• Competitors (who they are and why they pose a threat)
• Discuss at least 2 recent business events (occurred in the last 6 months)
• Use Excel to depict the following, and then include the Excel tables in the Word document as either part of the body of the paper, or in the end as appendix:
  • 3-year revenue trend
  • 1-year stock trend (+ explanation: increasing, decreasing, any noteworthy business change such as takeover etc.)

2. Style (maximum 15 points)

• Format:
  • 6 pages typed
  • double-spaced
  • 12 pt. Times New Roman font
  • margins set to 1 inch on all sides
  • the first line of paragraphs indented one half-inch
• Header with page numbers in the upper right corner
• Include subheadings (in MLA format)
• Spell-checked, and checked for grammatical correctness

3. References (maximum 15 points)

• Using MLA format, sources must be included in your text and at the end
• Cite every information source you use
• Do NOT copy & paste information from sources

Assignment Questions

1. Discuss the various risks of international investing. [03]
2. What is the basic difference between a closed-end fund and an open-end fund?                                  [03]
3. The Closed Fund is a closed-end investment company with a portfolio currently worth $325 million. It has liabilities of $80 million and 5 million shares outstanding.
4. What is the NAV of the fund?                                            [02]
5. If the fund sells for $45 per share, what is its premium or discount as a percent of net asset value? [02]

Question 1
Suppose you are currently unemployed and are looking for a job. You notice that the newspaper corporation, The Daily Bugle, is hiring reporters and photographers.
a) Remember that economists believe that you can divide your time (24 hours/day) into two different activities. According to the lectures, what are these activities?
b) For you personally, what would be your reservation wage to work for the company? What does this wage mean for you?
c) Suppose the company offers you a wage rate of $17.50/hour. For you personally, how many hours of work (in a day) would you perform for the firm?
d) Suppose the company offers you a wage rate of $10,000/hour. For you personally, how many hours of work (in a day) would you perform for the firm?
e) For you personally, what wage rate would the company have to pay you in order to spend your entire day working?
f) Draw your individual labor supply curve using the specific numbers you provided above.
g) What shape does it take? Label where the substitution effect is dominant, where the income effect is dominant, and where the two effects cancel each other out. Make sure that the wages your wages in the previous questions are consistent with the shape of your individual labor supply curve.
h) What does it mean for the substitution effect to be dominant for you?
i) What does it mean for the income effect to be dominant for you?
j) How does this differ from the market labor supply curve?

Question 2
T’Challa is the chief of the country Wakanda, and he wants to mine vibranium from the country’s mines. He can sell each unit of the good for $10 while it cost him $400 to employ each worker. His chief advisor provides him with the table below.

Question 3
Suppose you have accepted the job at The Daily Bugle, and there are talks about the workers forming a union.
a) Briefly list and describe the different types of union structures talked about in the lectures.
b) Would you personally join the union? Why or why not? Provide at least five sentences showing your reasoning.
c) What kind of things would you personally like the union to negotiate for during the collective bargaining talks? List at least three items.

Instruction:
• Homework is team-based. Each team member is expected to solve the problem on their own, and then,
discuss it with team members to compile answers for submission.
• Homework must be turned in via the submission link posted in LearnUs by each team, i.e., homework
submitted by one team member will be counted for other team members.
• Homework should be submitted by the due date. Late homework submission will not be accepted unless
pre-approved by instructor with an acceptable reason. Also, no homework submission results in “0”
point.
• Answers should be hand-written or typed and compiled in a single pdf file with a cover page including
team members’ names attached.
• Show your work explicitly and clearly to get full/partial credit for each problem.
• Grading policy
– Excellent: 10
– Very Good: 9
– Good: 8
– Satisfactory: 7
– Not Satisfactory: below 6 (no submission results in ”0”)
•
Reference:
• All the problems to accompany Nahmias, S. and Olsen, T.L. (2015). Productions and Operations Analysis,
7th edition, Waveland Press, Inc.