Question

What is a “basis point”? ANSWER:            Can you easily find asset classes that possess positive...

What is a “basis point”?

ANSWER:     

     

Can you easily find asset classes that possess positive returns, above that of inflation, which also possess negative correlation? (Yes or No.)

ANSWER:           

Explain the concept of “multi-asset class investing” in your own words.

ANSWER:           

The author states that both “U.S. stocks and U.S. bonds have real positive returns over time.” What is “real return”? What is “nominal return”?

ANSWER:           

The author states: “There is no known way to design a portfolio that is fully hedged against market downturns while fully participating in market upturns.” In your own words, what does he mean by this?

ANSWER:           

What are the three important characteristics you should look for, when deciding which asset classes to include in your investment portfolio? (You may quote directly from the book, for this answer.)

ANSWER:           

U.S. stocks are those stocks of companies that have their headquarters in the United States. But many corporations, especially of larger U.S. companies, possess substantial overseas operations – and hence generate revenue, and profits, from “foreign” operations. Undertake a Google search for “foreign revenues S&P 500 2014.” For U.S. large corporations – defined for this purpose as those corporations in the S&P 500 Index, what percentage of sales occurred to customers in foreign countries in any recent year?

(Note: For comparison purposes, U.S. small-cap stocks, as measured by the Russell 2000 Index, only derive about 20% of their revenues from sales to non-U.S. customers.)

ANSWER:           

Explain, in your own words, the difference between a “large cap” and “mid-cap” and “small-cap” stock.

ANSWER:           

Explain, in your own words, the difference between a “value” and “growth” stock.

ANSWER:

Homework Answers

Answer #1

1) Basis point is one hundredth of a percent. That is 1 bp = 0.01 %

It is usually used to indicate change in interest rate.

2) No

If two returns are negatively correlated, as one asset price increase , other decrease. So both return can't be positive.

3) Multi asset class investing is investing in different asset classes like bonds, stocks, real property, cash. It helps in diversifying risk. Because the correlation between returns of the asset classes are lower than the correlation within each asset class.

4) Real return is the return after adjusting for inflation. Nominal return is the stated return without adjusting for inflation.

Real return =[ (1+nominal rate)/(1+Inflation rate) ] - 1

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Directions: Answer the following questions on a separate document. Explain how you reached the answer, or...
Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. B. Using the two stocks you identified, determine the free...
After reading the following article, how would you summarize it? What conclusions can be made about...
After reading the following article, how would you summarize it? What conclusions can be made about Amazon? Case 12: Amazon.com Inc.: Retailing Giant to High-Tech Player? (Internet Companies) Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July 1994, and sold its first book in July 1995. In May 1997, Amazon (AMZN) completed its initial public offering and its common stock was listed on the NASDAQ Global Select Market. Amazon quickly...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant...
1. What is an ISP (Integrated Service Provider) for supply chains? (1 point) A. A consultant agency which integrates the supply chain for companies B. A 2 PL or a 3PL, but not a 4PL C. A company supplying transportation and warehousing services D. A logistics service company specialized in suppling VAS (value added services) 2. What characterizes a 4 PL? (1 point) A. They are non-asset based and provides integrated services primarily supplied by asset based providers, for example...
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
Answer these questions for the case study: Purple Innovation, Inc.: The Online to Offline Marketing Challenge...
Answer these questions for the case study: Purple Innovation, Inc.: The Online to Offline Marketing Challenge (a) Delineate what marketing data analytics and metrics were used by Purple Innovation, Inc to assess the effectiveness of their marketing actions and marketing campaigns. (There are many.) Within your answer, provide the type of analytics and /or metrics and for each one, and, for each one, an example of specific dollars, numbers, percentages that were provided in the case. (Be sure to include...
Answer the following questions from the information below a. What are the organization's marketing goals? b....
Answer the following questions from the information below a. What are the organization's marketing goals? b. What are the symptoms of the problem? In other words, which of the organization's marketing goals mentioned in section a., above are not being met? c. What is the organization's problem? Look at the symptoms and make a judgement about what their cause may be. Do not confuse symptoms with problems. Problems cause symptoms. d. Perform a SW/OT analysis: -What are the organization's internal...
provide 3-4 paragraphs post (team 2) 1-What are 4 key things you learned about the topic...
provide 3-4 paragraphs post (team 2) 1-What are 4 key things you learned about the topic from reading their paper? 2-How does the topic relate to you and your current or past job? 3-Critique the paper in terms of the organization and quality.1- Employee Stress and how it has an Adverse Effect on a Company This paper explores employee stress and how it has an adverse effect on a company, its employees and the organization. Job stress can have a...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest retailer, both in terms of the number of stores (8,970 worldwide in 2011) and the level of sales ($419 billion from the 2011 Annual Report). By pushing suppliers to continually reduce costs, Wal-Mart is known for pursuing low prices and the stores often attract customers solely in-terested in lower prices. With Wal-Mart’s expansion into groceries, the company has be-come the largest retail grocer in...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT