Question 1. Is a single dollar worth more today or a year from now? Why?
Question 2. I have two available projects in which I can invest. Project A has three possible (equally likely returns on investment (10%), 15%, and 55%. Project B similarly has three returns (also equally likely) of 15%, 20%, and 25%. The average return on these investments is 20%.
Therefore, wouldn't I be indifferent between the two as investment opportunities?
Question 3. Congratulations! You just won a $1 million lottery. You have the choice of taking 20 annual payments of $50,000 per year or a lump sum of $400,000 right now. What considerations do you need to take into account when deciding which option to accept? Assume that there are no taxes.
Question 4. Why are changes that the Federal Reserve makes to the discount rate so important to business investment?
Question 5. Can a series of highly risky investments be combined into a low risk portfolio?
Question 6. Why is shelf registration important?
Question 7. What role does the underwriter play in a new issue?