Reference no: EM131151434
Question #1:
Think about our discussion about market bubbles as well as the information in the text from Chapter 8 and Chapter 9. It could be argued that bubbles exist and are beneficial, exist and are detrimental, or do not exist at all, but are rather just small errors in rational evaluation of assets. Explain using examples and logic why this issue has so many possible explanations.
Question #2
Discuss the increase and implications of "high-speed" trading to the best of your understanding. Outline, algorithmic trading, ECNs, market segmentation and Dark Pools. (Please don't just summarize the chapter)
IEX is going through an initial public offering. They want to raise $1.5 B in equity from the IPO. The investment bank is charging the firm an explicit underwriting fee of 6.75%. The offer price on the IPO is set at $40. IEX stock closes the day at $46.31. What is the total cost to IEX for the IPO?
Options. Given the following three scenarios what type of option would you want to use, why?
You think BAC (Bank of America) will have a large judgement against them in court for not maintaining its fiduciary responsibilities to clients.
You own AA, the current price is $14.83 you feel the fundamental value of the firm is $16.25.
You think that X, is undervalued by the market currently. They have an earnings call next week, and you feel their EPS will be greater than the average analyst estimate.
Question #3
What is the biggest difference between the way the S&P 500 and DOW 30 construct their index. (Please don't say it is that one has 500 companies and the other has 30).
You are an investor in XTYC fund. This mutual fund charges a 1.25% management fee at the end of the year on its asset under management in the fund. Consider the following information. What is the NAV of the fund at the end of the year, if the fund has 3,000,000 shares issued and all dividends are cash dispersed to the mutual fund investors (it is January 1st)? What was your return for the year?
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Stock
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Shares
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Initial Price
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Capital Gain %
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Dividend Paid
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A
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100,000
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$ 35.49
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0.1146
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$ 1.75
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B
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200,000
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$ 248.64
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0.1386
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$ 3.10
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C
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500,000
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$ 49.16
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0.0943
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$ 4.45
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D
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250,000
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$ 118.09
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0.1892
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$ -
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E
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100,000
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$ 69.19
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0.0493
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$ 7.15
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F
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300,000
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$ 29.89
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0.1831
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$ 2.40
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Which size would you specify for a design load of 5000 lb
: If two strands support the load equally, which size would you specify for a design load of 5000 lb?
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Identify facts from the scenario which support your decision
: Define the elements of a legal contract using examples from the scenario where applicable. Decide whether or not there was a contract for the purchase of the automobile.
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Determine the power rating of a no. 60 chain
: Determine the power rating of a no. 60 chain, single strand, operating on a 20-tooth sprocket at 750 rpm. Describe the preferred method of lubrication. The chain connects a hydraulic drive with a meat grinder.
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What is your personal discount rate or rate of preferences
: What is your personal discount rate or rate of preferences? That is, how much would you pay for a promise of $1,000 to be received one year from now? Would you discount it by 10%, 5%, etc?
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Discuss the increase and implication of high-speed trading
: Discuss the increase and implications of "high-speed" trading to the best of your understanding. Outline, algorithmic trading, ECNs, market segmentation and Dark Pools.
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Compute the linear speed of the belt
: Specify the standard 5V belt length (from Table 7-2) that would be applied to two sheaves with pitch diameters of 8.4 in and 27.7 in with a center distance of no more than 60.0 in.
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Illustrate how social factors such as gender
: Differentiate between various theoretical explanations for delinquent behavior. Illustrate how social factors such as gender, racial and ethnic background, and social class relate to delinquency.
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State inspectors counts vs independent counts
: Mary wants to rely on the state inspectors' counts instead of her making independent counts thereof. Can Mary do this.
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Describe the nature of the data contained in agma
: Describe the nature of the data contained in AGMA standards that relate to the ability of a given gear tooth to withstand the major types of stresses that it sees in operation.
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