repetera

Question 1

CML-capital market line

Answer 1

line between risk-free interest rate and best sharp ratio of portfolio combinations
all in CML has same sharp ratio

Question 2

SML-security market line

Answer 2

beta in x-axis and expected return in y-axis

show any portfolio but not all are efficient

Question 3

underwriting

Answer 3

advice
document
underwrite

Question 4

equity sell

Answer 4

confidential memorandum
letter of intent
due diligence
definitive agreement

Question 5

statement of financial performance

Answer 5

income statement

Question 6

investment horizon

Answer 6

how long you tend to hold the investment

Question 7

bond identure

Answer 7

bond contract with all the details

Question 8

debentures

Answer 8

unsecured bonds

Question 9

SRI-social responsible investment

Answer 9

takes into account the societal and ethical perspectives

stakeholder theory, divestment, screening

Question 10

how do you calculate price of bond when there is semiannual compounding?

Answer 10

Coupon divided in two

alter interest into semiannual