1 [20 Marks] (a) Alex is a young investor with high risk tolerance level and hopes to earn money

Question 1 [20 Marks] (a) Alex is a young investor with high risk tolerance level and hopes to earn money as fast as he can. Analyse each of the following plans and evaluate which is the most suitable plan for Alex. (12 Marks) (1) Dollar-cost averaging (2) Constant-dollar plan (3) Constant-ratio plan (4) Variable-ratio p

1) For this question, refer to the third tab, “Trader Activity.” Suppose that 9/1 is the first day of trading
1) For this question, refer to the third tab, “Trader Activity.” Suppose that 9/1 is the first day of trading for this particular contract so that there was no open interest on 8/31. This table lists the members of a hypothetical clearing house and their trading activity. The ten traders are identified in the first column, with other columns representing a day’s worth of trading. Find the volume and open interest at the end of 9/14. You can assume that on any particular day, a trader makes trades in only one direction, so that the daily numbers represent that trader’s volume.

Data Science Need help answering these In your readings, you read an article that provides a review of literature that
Data Science Need help answering these In your readings, you read an article that provides a review of literature that connects data science, finance, and economics. Choose one of the theoretical models (listed under section 2 of the article) or one of the statistical and econometric models (listed under section 3 of the article) and find five additional peer reviewed articles in this area (not mentioned in this journal article) that provide context to the topic. summary (formatted according to APA guidelines) that discusses the contribution of the five journal articles you selected and how those help to further understand the models originally presented. P Behavioral Finance In your readings, you read an article that discusses current trends in behavioral finance research: (a) DNA analysis and financial behaviors, (b) investor data and behavior, (c) Investor reaction, and (d) experimental market assets. Each of these articles can be found in this special issue of The Journal of Economic Behavior and Organization (editorial in your reading).Choose one of these areas and read the articles associated with the topic (mentioned in the appropriate sections of the editorial from your readings). Now, explore what research has been conducted since these articles were written.

Suppose there are three securities (A, B, and C) to choose from, and next year the economy will be in
Suppose there are three securities (A, B, and C) to choose from, and next year the economy will be in an expansion, normal, or recession state with probabilities 0.28, 0.38, and 0.34, respectively. The returns (%) on the securities in these states are as follows. Security A {expansion = 15.53, normal = 8.00, recession = 6.00}; Security B { 25.21, 11.00, -11.00}; Security C { 7.50, 7.50, 7.50}. If the investor is risk neutral (means that she does not care/worry about risk), which of these three securities would she buy?

4 [20 Marks] (a) Critically analyse the potential benefits of investing in options. (9 Marks) (b) Compare and contrast
Finance Assignment Writing ServiceQuestion 4 [20 Marks] (a) Critically analyse the potential benefits of investing in options. (9 Marks) (b) Compare and contrast the risks of investing in futures compared to traditional investments such as shares and bonds. (4 Marks) (c) A three-month call option contract on 100 shares of Demart common share with a strike price of RM 59 can be purchased for RM 590. Assuming that the market price of Demart rises to RM 66 per share by the expiration date of the option. (i) Evaluate the call holder’s profit. (4 Marks) (ii) Evaluate the holding period return (3 Marks) Question 5 [20 Marks] (a) Evaluate implications of Efficient Market Hypothesis on portfolio management (8 Marks) (b) Given the following situations, evaluate in each scenario whether the hypothesis of an efficient capital market of semi-strong form is violated. (i) Through the introduction of an advanced webinar into the analysis of the past share price movements, a brokerage firm is able to predict price movements are able to earn consistent 1% profit more than normal market returns after adjusted for risk. (4 Marks) (ii) On average, investors in the stock market this year are expected to earn a positive return on their investment. Some investors will earn considerably more than others. (4 Marks) (iii) You have discovered that the square root of any given stock price multiplied by the day of the month provides an indication of the direction in price movement of that particular stock with a probability of 20%. (4 Marks)

Positive economic profits exist within an industry. Which of the following statements are true? A. There is incentive for additional
Positive economic profits exist within an industry. Which of the following statements are true? A. There is incentive for additional firms and economic resources to enter into this industry.B. Companies in the industry are earning profits and returns on investment that are above the normal level.C. Both a and bD. Neither a nor b

4 [20 Marks](a) Critically analyse the potential benefits of investing in options. (9 Marks)(b) Compare and contrast the risks
Question 4 [20 Marks](a) Critically analyse the potential benefits of investing in options. (9 Marks)(b) Compare and contrast the risks of investing in futures compared to traditional investments such as shares and bonds.(4 Marks)(c) A three-month call option contract on 100 shares of Demart common share with a strike price of RM 59 can be purchased for RM 590. Assuming that the market price of Demart rises to RM 66 per share by the expiration date of the option.(i) Evaluate the call holder’s profit. (4 Marks)(ii) Evaluate the holding period return (3 Marks)

(a) Evaluate implications of Efficient Market Hypothesis on portfolio management (8 Marks) (b) Given the following situations, evaluate in each
(a) Evaluate implications of Efficient Market Hypothesis on portfolio management (8 Marks) (b) Given the following situations, evaluate in each scenario whether the hypothesis of an efficient capital market of semi-strong form is violated: (i) Through the introduction of an advanced webinar into the analysis of the past share price movements, a brokerage firm is able to predict price movements are able to earn consistent 1% profit more than normal market returns after adjusted for risk. (4 Marks) (ii) On average, investors in the stock market this year are expected to earn a positive return on their investment. Some investors will earn considerably more than others. (4 Marks) (iii) You have discovered that the square root of any given stock price multiplied by the day of the month provides an indication of the direction in price movement of that particular stock with a probability of 20%. (4 Marks)

2 [20 Marks](a) Analyse the relationship between bond prices and interest rates during recession.(4 Marks)(b) An investor estimates that
Question 2 [20 Marks](a) Analyse the relationship between bond prices and interest rates during recession.(4 Marks)(b) An investor estimates that next year’s net income for Hilary Pullman Hotel would be RM 8 million. The company has 0.5 million shares outstanding and decided to pay RM 0.5 million to the preferred stockholders from its net income. Listed companies similar to Hilary Pullman Hotel have been recently reported to have an average price/earnings ratio of 4 times. Given the information, calculate the expected price of the stock and evaluate the problems in using Price/earnings ratio method of valuing the shares of a company.(6 Marks)(c) East Boutique recently paid RM 1. 65 as an annual dividend. Future dividends are projected at RM 1.68, RM 1.72, RM 1.76 and RM 1.80 over the next four years, respectively. Beginning five years from now, the dividend is expected to increase by 2.5 percent annually. Assess the worth of one share in this company if you require an 11 percent rate of return on similar investments.(4 Marks)(d) Which of the following bonds should an investor select, if the market interest rate were projected to fall by 50 basis point over the next six months? (Calculation for the percentage change in bond prices is required). (6 Marks)(1) JK bond with a Macaulay duration of 9.5 years that’s currently being priced to yield 10%.(2) Super bond with a Macaulay duration of 8.7 years that’s currently being priced to yield 5.8%.

Hello! I’m working on the following question and need help. The first sentence tells me that as the holder of
Hello! I’m working on the following question and need help. The first sentence tells me that as the holder of the call option, I have the right to purchase a stock for $30, that is currently priced at $35. By exercising the option I could make a $5 profit. The second sentence has me puzzled, because it says the “option sells for $5 one year before expiration”. How am I supposed to interpret this information? I thought call options gave you the right to buy, not sell. Continuing with the question, I makes sense that I could exercise the option at the strike price now and profit $5. But again, I’m confused because why would I put these $5 in the bank account until the expiration date, if I already exercised the right to buy it for $30? Should I be making the assumption that I now have a put option? Finally, if I hold on to the option until expiration and sell short doesn’t that mean that I would sell at the market price which in this case is $35 because that’s what I’m taking to the bank? But don’t I also have to agree to buy it back in the future?The way this question is phrased is very confusing. Should I read this as both a call and put option?

Suppose you plan to purchase a house. You add up all your current monthly expenses and subtract them from your
Suppose you plan to purchase a house. You add up all your current monthly expenses and subtract them from your monthly net salary and discover a $1,500 surplus. You also have $40,000 in a savings account accruing interest at a 2.50% rate. You deposit your surplus of $1,500 each month for a year before purchasing a house. You apply for a 30 year mortgage and get approved for $500,000 at a 2.7% interest rate. You are unsure if you can afford a house that costs $500,000. How much of a mortgage you can afford to take out