1. As an institutional investor, you believe that you should own large stakes in office and retail. However, your client believes that rotational performance offsets the benefits of diversification. Which of you is correct? Explain.
2. What is the yield to maturity of a corporate bond with 13 years to maturity , a coupon rate of 8% per year, a $1000 par value and a current market price of $1250? Assume semiannual coupon payments
3. A major college textbook publisher has an existing finance textbook. The publisher is debating whether or not to produce an essentialized version, meaning a shorter (and lower priced) book. What are some of the considerations that should come into play?