Predict stock price movements

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Chapter 12 

3. Explain the following statements: (a) There is a strong, consistent relationship between money supply changes and stock prices. (b) Money supply changes cannot be used to predict stock price movements. 

4. The current rate of inflation is 3 percent, and long-term Treasury bonds are yielding 7 percent. You estimate that the rate of inflation will increase to 6 percent. What do you expect to happen to long-term bond yields? Compute the effect of this estimated change in inflation on the price of a 15-year, 10 percent coupon bond with a current yield to maturity of 8 percent. 

Chapter 13 

1. Briefly describe the results of studies that examined the performance of alternative industries during specific time periods, and discuss their implications for industry analysis. 

 

2. Briefly describe the results of the studies that examined industry performance over time. Do these results complicate or simplify industry analysis? 

Reference no: EM13831021

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