Problem
Textbook: Melicher, Ronald W., and Edgar A. Norton Introduction to Finance: Markets, Investments, and Financial Management, Enhanced eText. Wiley Global Education US, 2016. [Savant Learning Systems].
• Why are bond returns expected to be lower than stock returns?
• Go to the yahoo finance website and enter the ticker symbols for Ford (F), Google (GOOG), and Wal-Mart (WMT). What are their current values of (i) stock price; (ii) annual dividend; (iii) dividend yield; and (iv) price / earnings ratio?
• You are an entry-level security analyst at an investment firm. The firm's economist is forecasting higher energy prices. How might this affect your decision to recommend the buying of stocks in each of the following firms? Explain your reasoning.
o ExxonMobil
o American Airlines
o Ford Motor Company
o Archer Daniels Midland (a food processor)
• Would primary markets exist without the existence of secondary markets? Why or why not?
• Merrill Lynch is a full service broker. Charles Schwab is a discount broker. E*Trade is an online broker. Visit their websites and compare and contrast their services.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.