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Suppose that Morningstar reports that a mutual fund has earned an alpha of 2.0% per year on average. Is this a violation of market efficiency?
The Sisters of St. Susan run a homeless shelter called Hope House, which is a 501(c)(3) charity. Is the income from Hope House UBTI? Why or why not?
Assume Sophie becomes a client of yours. What do you advise her with respect to her charitable giving? Is there a better way for her to give to charity?
Sarah is very charitable. She's on the board of a few charities, regularly volunteers for those organizations. What strategies should she employ?
At what future spot exchange rate will you be indifferent between the forward and option market hedges?
What is meant by the term dividend policy? Describe the series of steps that most firms take in setting dividend policy in practice.
On June 6, 2016, the Y/$ exchange rate was Y107.62/$1.00. At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?
You Are A foreign exchanger in HSBC. you observe the following quotes. Calculate the forward premium (or discount) on the £ expressed on a per annum basis.
Given what you have learned, how do you think the required return will affect market value of your firm's stock? How would you go about estimating this rate?
What is the project's modified internal rate of return? Calculate to two decimal places. What is the project's weighted-average cost of capital?
A project has an initial cost of $45,000. The incremental inflows associated. hWhat is the project's internal rate of return? Calculate to two decimal places.
What is the return realized by the hedge fund on its own capital? What is the volatility of the hedge fund's levered position from the previous question?
The stock of NovelCo is currently trading at $50. What is the value of this Binary option if the strike price is $53?
Draw the Payoff & Profit diagram for each state of nature. What is the net profits per share if the share price is $40?
You purchased three puts with an exercise price of $50 and one call with and exercise price of $75. What is the payoff to the option position?
Discuss prospect theory in detail and summarize frame dependence, loss aversion, mental accounting, and house money. Give examples of each.
What are three key advantages of home ownership? What is the total cost (over 30 years) for a home that has a mortgage of $1,500 per month?
Which is most likely indicates the maximum fee an investor should pay a portfolio manager? Group of answer choices Sharpe ratio Jensen's alpha Treynor ratio.
If the bond's yield to maturity does go from 10 percent to 9.5 percent and the bond's price is $947.73, what will the bond price be after the decline?
Would you advise corporations to set a goal of becoming debt-free? Would you advise young people to set becoming debt-free as a goal? Explain.
After making 14 payments she decided to pay the |oan in full. Use Rule of 78 to determine the unearned interest and the amount necessary to pay loan in full.
Jimenez, Incorporated, is an all-equity firm. If the company has a tax rate of 23 percent, what is the net present value of the project?
The common stock of Omega Ent is selling for $50 a share. Is there a possibility of arbitrage? What is the arbitrage strategy and possible payoff?
Define and evaluate a portfolio insurance strategy for a stock portfolio currently worth $10 million.
A stock is selling for $61.55 per share. Put options with an exercise price of $53.70 are priced at $3.81. What is the time value of this option?