Discussion:
1. Forward transactions would be useful to
2. One implication of the efficient markets hypothesis is that investors should
3. Hedgers are primarily interested in
4. Suppose you plan to hold a stock for one year. You expect that, in one year, it will sell for $30 and pay a dividend of $3 per share. If your required return on equity is 10%, what is the most you should be willing to pay for the share today
5. The rate of return of a stock held for one year equals
6. According to the efficient markets hypothesis, who is most likely to benefit from frequently moving funds from one asset to another
7. The required return on equity for an individual stock includes which of the following?
8. Excess volatility refers to
9. Speculators in derivatives markets
10. The difference between a firm's assets and its liabilities is known as