Reference no: EM131711438
1) Which factor, irrational expectation or over-borrowing, matters more for a financial crisis? Why?
2) What are the three types of financial assets? Which type is unique (relative to the other two) to you? Why?
3) I expect IBM stock's price to drop tomorrow and want to short sell IBM to capture this opportunity. The current IBM stock is $100 per share. I borrow one IBM share from my broker and sell it on the market right away. The initial margin requirement is 50% and the maintenance margin requirement is 40%.
a. How much my own money should I put into my margin account initially?
b. If IBM stock rises to 120$ tomorrow, will I receive a margin call?
c. If I have to close the margin account (spending 120$ on a IBM share and returning it to my broker), what will my return be?
4) Show an example of information asymmetry and agency problems in financial markets.
5) History shows that, on average, there are only up to 10 days in any year when stock market has a 10%+ daily return. Is this against market efficiency? Why?
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What patterns might influence the direction of your research
: What social, political, or personal factors might influence the direction of your research?What interest groups would be involved?
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Prepare tamarisk journal entries related to this investment
: Tamarisk Corporation purchased for $270,000 a 30% interest in Murphy, Inc. Prepare Tamarisk's journal entries related to this investment
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What are the two characteristics of a good interpretation
: Suppose the actual situation is that the sample comes from a population that is not the one hypothesized by the null hypothesis.
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Organization improve its operational processes
: 1. Identify at least two (2) financial theories that can help an organization improve its operational processes.
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Irrational expectation or over-borrowing
: 1) Which factor, irrational expectation or over-borrowing, matters more for a financial crisis? Why?
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Discuss about the grapes of wrath
: Read and analyze John Steinbeck's an excerpt from "The Grapes of Wrath" In this reading of the passage
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Find probability of type i and type ii errors
: Suppose a researcher chooses to use a = .01 rather than .05. What effect does this have on the probability of Type I and Type II errors?
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What amount should be reported as an intangible asset
: On a December 31, Year One balance sheet, what amount should be reported as an intangible asset in connection with these amounts
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Should pensions be spendable
: Should pensions be spendable? Under current law, some pensions can be borrowed against by the employees, even while they are still working.
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