Intro

Question 1

Division

Answer 1

Investors- Securities Markets- Corporates (Dividend+Interests Paid)- Capital Projects (Profits)

Question 2

Asset pricing

Answer 2

Prices are determined by firm risk relative to aggregate benchmarks. Firms risk characteristics are independent of actions of competitors

Question 3

QUESTIONS

Question 4

Corporate Finance

Answer 4

Investigates the failure of MM proposition that the real and financial decisions of the firm are independent

Question 5

What’s the Fair Price for Stock/ Bond?

Question 6

What’s the Expected Return from holding this Security?

Question 7

How Risky is this Stock/ Bond?

Question 8

How Risky is this Portfolio of Assets?

Question 9

What’s the Historical Evidence on how Stock+ Bond Markets have performed in terms of Returns & Risks?

Question 10

What’s the evidence on whether Securities are Fairly Priced in markets?

Question 11

SKILLS

Question 12

Investment Evaluation of Security+ Industry+ Economy

Answer 12

Stock Worth (More)

Question 13

Take Data on Stock/ Bond Prices=> Evaluate Security’s Historical Risk/ Return Profile (statistical analysis)