Title: BUS 405 EDU Invent Youself/bus405edu.com
1BUS 405 EDU Perfect Education/bus405edu.com
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2 BUS 405 Entire Course FOR MORE CLASSES
VISIT www.bus405edu.com BUS 405 Week 1 DQ 1
Blumes Formula, Allocation, and Selection BUS 405
Week 1 DQ 2 Money Market Funds BUS 405 Week 1
Quiz Chapters 1-4 BUS 405 Week 1 Assignment
Annualized Returns Chapter 3 problem 18 BUS 405
Week 2 DQ 1 Primary and Secondary Markets BUS 405
Week 2 DQ 2 Contrarian Investing BUS 405 Week 2
Assignment Abbott Laboratories Problem BUS 405
Week 2 Quiz Chapters 5-8 BUS 405 Week 3 DQ 1
Forward Interest Rates BUS 405 Week 3 DQ 2 Bond
Prices versus Yields BUS 405 Week 3 Assignment
Bootstrapping Chapter 10 Problem 31 BUS 405 Week
3 Quiz Chapters 9-10 BUS 405 Week 4 DQ 1 Expected
Returns and Deviation BUS 405 Week 4 DQ 2
Portfolio Weights BUS 405 Week 4 Assignment
Performance Metrics Chapter 13 Problem 22
3 BUS 405 Week 1 Assignment Annualized Returns
Chapter 3 problem 18 FOR MORE CLASSES
VISIT www.bus405edu.com Annualized Returns.
Complete problem 18 in Chapter 3 (shown below)
and submit to the instructor. Show your work to
find the annualized return for each of the listed
share prices. Write a 100 word analysis of the
process to calculate these annualized
returns. Suppose you have 28,000 to invest.
Youre considering Miller-Moore Equine
Enterprises (MMEE), which is currently selling
for 40 per share. You also notice that a call
option with a 40 strike price and six months to
maturity is available. The premium is 4.00. MMEE
pays no dividends. What is your annualized return
from these two investments if, in six months,
MMEE is selling for 48 per share? What about 36
per share?
4 BUS 405 Week 1 DQ 1 Blumes Formula, Allocation,
and Selection FOR MORE CLASSES VISIT www.bus405edu
.com Blumes Formula, Allocation, and Selection.
From Chapter 1, answer Concept Question 5 What
is Blumes formula? When would you want to use it
in practice? Also, from Chapter 2, answer Concept
Question 4 What is the difference between asset
allocation and security selection? Remember to
complete all parts of the questions and support
your answers with examples from the text and
other resources. Respond to at least two of your
classmates postings outside of your own thread.
5 BUS 405 Week 1 DQ 2 Money Market Funds FOR MORE
CLASSES VISIT www.bus405edu.com Money Market
Funds. From Chapter 4, complete Problem 4 The
Aqua Liquid Assets Money Market Mutual Fund has a
NAV of 1 per share. During the year, the assets
held by this fund appreciated by 2.5 percent. If
you had invested 50,000 in this fund at the
start of the year, how many shares would you own
at the end of the year? What will the NAV of this
fund be at the end of the year? Why? Remember to
complete all parts of the question, show your
work, and report the results of your analysis.
Respond to at least two of your classmates
postings outside of your own thread.
6 BUS 405 Week 1 Quiz Chapters 1-4 (All possible
Questions) FOR MORE CLASSES VISIT www.bus405edu.co
m BUS 405 Week 1 Quiz Chapters 1-4 400 Question
Set
7 BUS 405 Week 2 Assignment Abbott Laboratories
Problem FOR MORE CLASSES VISIT www.bus405edu.com
Abbott Laboratories Problem. After reading
the Value Line figures and information on Abbott
Laboratories in the Questions and Problems
section of Chapter 6 (just before Problem 27),
complete Problems 27, 28, 29, 30, and 31 and
submit to your instructor. Show your calculations
and in your response to problem 31 write a 100 to
200 word defense of your position as to the value
of Abbott Laboratories stock at its current price
of 50 per share. 27. What is the sustainable
growth rate and required return for Abbott
Laboratories? Using these values, calculate the
2010 share price of Abbott Laboratories
Industries stock according to the constant
dividend growth model. 28. Using the P/E, P/CF,
and P/S ratios, estimate the 2010 share price for
Abbott Laboratories. Use the average stock price
each year to calculate the price ratios.
8 BUS 405 Week 2 DQ 1 Primary and Secondary
Markets FOR MORE CLASSES VISIT www.bus405edu.com
Primary and Secondary Markets. Complete Concept
Question 1 from Chapter 5 If you were to visit
your local Chevrolet retailer, there is both a
primary and a secondary market in action.
Explain. Is the Chevy retailer a dealer or a
broker? Remember to complete all parts of the
question and support your answers with examples
from the text and other resources. Respond to at
least two of your classmates postings outside of
your own thread.
9 BUS 405 Week 2 DQ 2 Contrarian Investing FOR
MORE CLASSES VISIT www.bus405edu.com Contrarian
Investing. Complete Concept Question 9 from
Chapter 8 What does it mean to be a contrarian
investor? How would a contrarian investor use
technical analysis? Post your answers to the
discussion board. Remember to complete all parts
of the question and support your answers with
examples from the text and other resources.
Respond to at least two of your classmates
postings outside of your own thread.
10 BUS 405 Week 2 Quiz Chapters 5-8 (All Possible
Question) FOR MORE CLASSES VISIT www.bus405edu.com
BUS 405 Week 2 Quiz Chapters 5-8 400 Question
Set
11 BUS 405 Week 3 Assignment Bootstrapping Chapter
10 Problem 31 FOR MORE CLASSES VISIT www.bus405edu
.com ootstrapping. Complete problem 31 of
Chapter 10 (shown below), and submit to your
instructor. Show your calculations and the
algebraic manipulation of the price equation for
the bond. In addition to solving the problem,
write a 100 to 200 word essay on the term
structure of fixed income securities. One method
used to obtain an estimate of the term structure
of interest rates is called bootstrapping.
Suppose you have a one-year zero coupon bond with
a rate of r1 and a two-year bond with an annual
coupon payment of C. To bootstrap the two-year
rate, you can set up the following equation for
the price (P) of the coupon bond Because you can
observe all of the variables except r2, the spot
rate for two years, you can solve for this
interest rate. Suppose there is a zero coupon
bond with one year to maturity that sells for
949 and a two-year bond with a 7.5 percent
coupon paid annually that sells for 1,020. What
is the interest rate for two years? Suppose a
bond with three years until maturity and an 8.5
percent annual coupon sells for 1,029. What is
the interest rate for three years?
12 BUS 405 Week 3 DQ 1 Forward Interest Rates FOR
MORE CLASSES VISIT www.bus405edu.com Forward
Interest Rates. Complete Problem 16 from the
Questions and Problems section of Chapter 9
According to the pure expectations theory of
interest rates, how much do you expect to pay for
a one-year STRIPS on February 15, 2011? What is
the corresponding implied forward rate? How does
your answer compare to the current yield on a
one-year STRIPS? What does this tell you about
the relationship between implied forward rates,
the shape of the zero coupon yield curve, and
market expectations about future spot interest
rates? Remember to complete all parts of the
questions, and report the results of your
analysis. Respond to at least two of your
classmates postings outside of your own
thread.
13 BUS 405 Week 3 DQ 2 Bond Prices versus
Yields FOR MORE CLASSES VISIT www.bus405edu.com B
ond Prices versus Yields. Complete Concept
Question 9 of Chapter 10 (a) What is the
relationship between the price of a bond and its
YTM? (b) Explain why some bonds sell at a premium
to par value, and other bonds sell at a discount.
What do you know about the relationship between
the coupon rate and the YTM for premium bonds?
What about discount bonds? For bonds selling at
par value? (c) What is the relationship between
the current yield and YTM for premium bonds? For
discount bonds? For bonds selling at par value?
Remember to complete all parts of the questions,
and report the results of your analysis. Respond
to at least two of your classmates postings
outside of your own thread.
14 BUS 405 Week 3 Quiz Chapters 9-10 (All Possible
Question) FOR MORE CLASSES VISIT www.bus405edu.com
BUS 405 Week 3 Quiz Chapters 9-10 200
Question Set
15 BUS 405 Week 4 Assignment Performance Metrics
Chapter 13 Problem 22 FOR MORE CLASSES
VISIT www.bus405edu.com Performance Metrics.
Complete Problem 22 in the Questions and Problems
section of Chapter 13 (shown below). When you
pick the best choice for your portfolio, defend
your decision in a 100 - 200 word essay. You have
been given the following return information for
two mutual funds (Papa and Mama), the market
index, and the risk-free rate. Year Papa
Fund Mama Fund Market Risk-Free 2008 -12.6 -22.6
-24.5 1 2009
16 BUS 405 Week 4 DQ 1 Expected Returns and
Deviation FOR MORE CLASSES VISIT www.bus405edu.com
of Chapter 11 (shown below). Remember to
complete all parts of the questions, and report
the results of your analysis. Respond to at least
two of your classmates postings outside of your
own thread. a. Use the following information on
states of the economy and stock returns to
calculate the expected return for Dingaling
Telephone. State of Economy Probability of State
of the Economy Security Return if State
Occurs Recession .30 -8 Normal .40 13 Boom .30 23
17 BUS 405 Week 4 DQ 2 Portfolio Weights FOR MORE
CLASSES VISIT www.bus405edu.com Portfolio
Weights. Complete Problem 10 from the Questions
and Problems section of Chapter 12 A stock has a
beta of .9 and an expected return of 9 percent. A
risk-free asset currently earns 4 percent. a.
What is the expected return on a portfolio that
is equally invested in the two assets? b. If a
portfolio of the two assets has a beta of .5,
what are the portfolio weights? c. If a portfolio
of the two assets has an expected return of 8
percent, what is its beta? d. If a portfolio of
the two assets has a beta of 1.80, what are the
portfolio weights? How do you interpret the
weights for the two assets in this case?
Explain. Remember to complete all parts of the
questions, and report the results of your
analysis. Respond to at least two of your
classmates postings outside of your own thread.
18 BUS 405 Week 4 Quiz Chapters 11-13 (All Possible
Question) FOR MORE CLASSES VISIT www.bus405edu.co
m BUS 405 Week 4 Quiz Chapters 11-13 300
Question Set
19 BUS 405 Week 5 DQ 1 Hedging with Futures FOR
MORE CLASSES VISIT www.bus405edu.com Hedging
with Futures. Complete Concept Question 7 from
Chapter 14 The town of South Park is planning a
bond issue in six months and Kenny, the town
treasurer, is worried that interest rates may
rise, thereby reducing the value of the bond
issue. Should Kenny buy or sell Treasury bond
futures contracts to hedge the impending bond
issue? Remember to complete all parts of the
question and support your answers with examples
from the text and other resources. Respond to at
least two of your classmates postings outside of
your own thread.
20 BUS 405 Week 5 DQ 2 Option Strategies FOR MORE
CLASSES VISIT www.bus405edu.com Option
Strategies. Complete Concept Question 12 from
Chapter 15 Recall the options strategies of a
protective put and covered call discussed in the
text. Suppose you have sold short some shares of
stock. Discuss analogous option strategies and
how you would implement them. (Hint Theyre
called protective calls and covered puts.)
Remember to complete all parts of the question
and support your answers with examples from the
text and other resources. Respond to at least two
of your classmates postings outside of your own
thread.
21 BUS 405 Week 5 Final Project Construct a
well-diversified portfolio (2 Paper) FOR MORE
CLASSES VISIT www.bus405edu.com This Tutorial
contains 2 Papers Focus of the Final
Project The student will construct a
well-diversified portfolio using an initial
investment stake of 50,000 (the portfolio should
use 95 of the fund, but they may not use more
than 50,000). The student may include stocks,
common or preferred bonds, corporate or U.S.
Treasury bonds mutual funds and futures
contract or options. The student will use the
closing prices from the first day of the class to
determine the price of each issue. Only whole
lots of any issues may be acquired, that is no
less than 100 shares of common or preferred
stock no less than 5 corporate bonds or 10,000
for U.S. Treasury Bonds no fewer than the
minimum required investment for any mutual fund
and no fewer than 5 contracts for any option or
futures position. The settlement date will be the
first day of Week 3. The student does not have to
use all of the above mentioned securities, but
they must use more than one class. Transaction
costs are ignored in the creation of the
portfolio. The paper is to be written in
accordance with the APA guidelines (6th
Edition). The student will write a paper that
22BUS 405 EDU Perfect Education/bus405edu.com
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- www.bus405edu.com