Reference no: EM133113269
Chapter 8: questions 3, 4, 9 and 12
Chapter 9: questions 2, 6, 9 and 11.
Chapter 8
3. Obtain a current quote of McDonald's (MCD) from the Internet. Describe what has changed since the quote in Figure 8.1.
4. Get the trading statistics for the three main U.S. stock exchanges. Compare the trading activity to that of Table 8.1.
9. Describe the difference in the timing of trade execution and the certainty of trade price between market orders and limit orders.
12. Under what conditions would the constant-growth model not be appropriate?
Chapter 9
2. Characterize the historical return, risk, and risk-return relationship of the stock, bond, and cash markets.
6.Which company is likely to have lower total risk,General Electric or Coca-Cola? Why?
9. You receive an investment newsletter advertisement in the mail. The letter claims that you should invest in a stock that has doubled the return of the S&P 500 Index over the last three months. It also claims that this stock is a surefire safe bet for the future. Explain how these two claims are inconsistent with finance theory.
11. Describe the diversification potential of two assets with a -0.8 correlation. What is the potential if the correlation is +0.8?
Attachment:- M Finance.rar