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FIN 402 Inspiring Minds/uophelp.com

FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide<br> <br>True/False<br> 1.___  ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets.<br> <br> 2.___  ___ Free cash flow = Cash flow from operations – Capital expenditures Disposition of property and equipment.<br> <br> 3.___  ___ The income statement indicates the flow of sales, expenses, and earnings during a period of time.<br> <br> 4.___  ___ Financial ratios are used in stock and bond valuation models.

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FIN 402 Inspiring Minds/uophelp.com

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  1. FIN 402 Inspiring Minds/uophelp.com For more course tutorials visit www.uophelp.com

  2. FIN 402 Inspiring Minds/uophelp.com FIN 402 Final Exam Guide For more course tutorials visit www.uophelp.com FIN 402 Investment Fundamentals and Portfolio Management Final Exam Guide True/False  1.___  ___ The balance sheet shows what assets the firm controls at a point in time and how it financed the assets.  2.___  ___ Free cash flow = Cash flow from operations – Capital expenditures + Disposition of property and equipment.

  3. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Capital Markets and Investment Banking Process Paper For more course tutorials visit www.uophelp.com FIN402 Week 1 Assignment Capital Markets and Investment Banking Process Paper

  4. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Case Problem 1.2 Preparing Carolyn Bowen’s Investment Plan For more course tutorials visit www.uophelp.com Case Problem 1.2 Preparing Carolyn Bowen’s Investment Plan Carolyn Bowen, who just turned 55, is employed as an administrative assistant for the Xcon Corporation, where she has worked for the past 20 years. She is in good health, lives alone, and has two grown children. A few months ago her husband died, leaving her with only their home and the proceeds from a $75,000 life insurance policy. After sh

  5. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Case Problem 1.2, 2.1, 2.2, 3.1, 12.1 For more course tutorials visit www.uophelp.com FIN 402 Week 1 Assignment Case Problem 1.2 Preparing Carolyn Bowen’s Investment Plan FIN 402 Week 1 Assignment Case Problem 2.1 Dara’s Dilemma: What to Buy? FIN 402 Week 1 Assignment Case Problem 2.2 Ravi Dumar’s High-Flying Margin Account FIN 402 Week 1 Assignment Case Problem 3.1 The Perezes’ Good Fortune FIN 402 Week 1 Assignment Case Problem 12.1 Reverend Mark Thomas Ponders Mutual Funds

  6. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Case Problem 2.2 Ravi Dumar’s High-Flying Margin Account For more course tutorials visit www.uophelp.com Case Problem 2.2 Ravi Dumar’s High-Flying Margin Account Ravi Dumar is a stockbroker who lives with his wife, Sasha, and their five children in Milwaukee, Wisconsin. Ravi firmly believes that the only way to make money in the market is to follow an aggressive investment posture—for example, to use margin trading. In fact, Ravi has built himself a substantial margin account over the years. He currently holds $75,000 worth of

  7. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Case Problem 3.1 The Perezes’ Good Fortune For more course tutorials visit www.uophelp.com Case Problem 3.1 The Perezes’ Good Fortune Angel and Marie Perez own a small pool hall located in southern New Jersey. They enjoy running the business, which they have owned for nearly three years. Angel, a retired professional pool shooter, saved for nearly 10 years to buy this business, which he and his wife own free and clear. The income from the pool hall is adequate to allow Angel, Marie

  8. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Assignment Case Problem 12.1 Reverend Mark Thomas Ponders Mutual Funds For more course tutorials visit www.uophelp.com Case Problem 3.1 The Perezes’ Good Fortune Angel and Marie Perez own a small pool hall located in southern New Jersey. They enjoy running the business, which they have owned for nearly three years. Angel, a retired professional pool shooter, saved for nearly 10 years to buy this business, which he and his wife own free and clear. The income from the pool hall is adequate to allow Angel, Marie

  9. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 AssignmentCase Problem 2.1Dara’s Dilemma: What to Buy? For more course tutorials visit www.uophelp.com Case Problem 3.1 The Perezes’ Good Fortune Angel and Marie Perez own a small pool hall located in southern New Jersey. They enjoy running the business, which they have owned for nearly three years. Angel, a retired professional pool shooter, saved for nearly 10 years to buy this business, which he and his wife own free and clear. The income from the pool hall is adequate to allow Angel, Marie

  10. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 DQ 1 For more course tutorials visit www.uophelp.com What are capital market instruments? How are they used? Which is most important? Explain your answer.

  11. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 DQ 2 For more course tutorials visit www.uophelp.com What are capital market instruments? How are they used? Which is most important? Explain your answer.

  12. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 DQ 3 For more course tutorials visit www.uophelp.com What are capital market instruments? How are they used? Which is most important? Explain your answer.

  13. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Individual Problem Set For more course tutorials visit www.uophelp.com The Problem Set is provided to you to enable you to practice the concepts outlined in the textbook. Select THREE completed problems from the assignment and post your solutions to those problems. 1. Creating prices for securities and allowing for liquidity are functions of 2. Which of the following best describes the function of an investment banker selling an issue on a "best efforts" basis?

  14. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 1 Individual Weekly Question For more course tutorials visit www.uophelp.com Submit your Weekly Questions, with original questions, in a Microsoft Word or text file. Be sure to show your work to earn full credit. Do not use Investopedia, About.com, Wikipedia, or other generic internet websites as sources. Use credible sources only. Also, do not use quotes in lieu of a response in your own words.

  15. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Asset Classes Paper For more course tutorials visit www.uophelp.com FIN402 Week 2 Assignment Asset Classes Paper

  16. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 2.1 Traditional Versus Modern Portfolio Theory Who’s Right For more course tutorials visit www.uophelp.com Case Problem 2.1 Traditional Versus Modern Portfolio Theory: Who’s Right? Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they moved through the firm’s sales organization, they became (and still remain) close friends. Walt, who is 33 years old, currently lives in Princeton, New Jersey. Shane, who is 35, lives in Houston, Texas. Recently, at the national sales meeting, they were discussing various company matters,

  17. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 4.1 Coates’s Decision For more course tutorials visit www.uophelp.com Case Problem 2.1 Traditional Versus Modern Portfolio Theory: Who’s Right? Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over the years, as they moved through the firm’s sales organization, they became (and still remain) close friends. Walt, who is 33 years old, currently lives in Princeton, New Jersey. Shane, who is 35, lives in Houston, Texas. Recently, at the national sales meeting, they were discussing various company matters,

  18. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 4.1, 4.2, 2.1, 5.2, 13.1 (Part a,b,c,d) For more course tutorials visit www.uophelp.com FIN 402 Week 2 Assignment Case Problem 4.1 Coates’s Decision FIN 402 Week 2 Assignment Case Problem 4.2 The Risk-Return Tradeoff Molly O’Rourke’s Stock Purchase Decision FIN 402 Week 2 Assignment Case Problem 2.1 Traditional Versus Modern Portfolio Theory Who’s Right

  19. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 4.2 The Risk-Return Tradeoff Molly O’Rourke’s Stock Purchase Decision For more course tutorials visit www.uophelp.com Case Problem 4.2 The Risk-Return Tradeoff: Molly O’Rourke’s Stock Purchase Decision Over the past 10 years, Molly O’Rourke has slowly built a diversified portfolio of common stock. Currently her portfolio includes 20 different common stock issues and has a total market value of $82,500. Molly is at present considering the addition of 50 shares of either of two common stock issues—X or Y. To assess t

  20. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’s Inherited Portfolio Does It Meet Her Needs For more course tutorials visit www.uophelp.com Case Problem 5.2 Susan Lussier’s Inherited Portfolio: Does It Meet Her Needs? Susan Lussier is 35 years old and employed as a tax accountant for a major oil and gas exploration company. She earns nearly $135,000 a year from her salary and from participation in the company’s drilling activities. An expert on oil and gas taxation, she is not worried about job security—she is content with her income and finds it adequate to all

  21. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Assignment Case Problem 13.1 Assessing the Stalchecks’s Portfolio Performance (Part a,b,c,d) For more course tutorials visit www.uophelp.com Case Problem 5.2 Susan Lussier’s Inherited Portfolio: Does It Meet Her Needs? Susan Lussier is 35 years old and employed as a tax accountant for a major oil and gas exploration company. She earns nearly $135,000 a year from her salary and from participation in the company’s drilling activities. An expert on oil and gas taxation, she is not worried about job security—she is content with her income and finds it adequate to all

  22. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 DQ 1 For more course tutorials visit www.uophelp.com What are different ratio categories? Which category is most important to bondholders? Why? Which category is most important to stockholders? Why?

  23. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 DQ 2 For more course tutorials visit www.uophelp.com What are different ratio categories? Which category is most important to bondholders? Why? Which category is most important to stockholders? Why?

  24. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 DQ 3 For more course tutorials visit www.uophelp.com What is the CAPM? Are CAPM assumptions realistic? Why or why not?

  25. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Learning Team Assignment Portfolio Selection Paper (2 Papers) For more course tutorials visit www.uophelp.com Resources: Electronic Reserve Readings, Internet, University Library Select one publicly traded bond. Select five organizations from the following list. These organizations represent the stocks that comprise your portfolio. Cisco Systems, Inc.®

  26. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 weekly Problem Set For more course tutorials visit www.uophelp.com The Problem Set is provided to you to enable you to practice the concepts outlined in the textbook. Select THREE completed problems from the assignment and post your solutions to those problems. In your solutions, provide an explanation as to why you choose the answer. 1. If RF = 6 percent, b = 1.3, and the ERP = 6.5 percent, compute Ke(the required rate of return).

  27. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 2 Weekly Question For more course tutorials visit www.uophelp.com (2 point) Calculate the expected return of the following stocks using CAPM. You can use internet websites to get Beta figures, such as Yahoo! Finance, Google Finance, MSN Money, Marketwatch, etc. Use 4% as the risk free rate and 6% as the risk premium. a. Proctor & Gamble (PG) b. Microsoft (MSFT)

  28. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Assignment Case Problem 6.1 Sara Decides to Take the Plunge For more course tutorials visit www.uophelp.com Case Problem 6.1 Sara Decides to Take the Plunge Sara Thomas is a child psychologist who has built a thriving practice in her hometown of Boise, Idaho. Over the past several years she has been able to accumulate a substantial sum of money. She has worked long and hard to be successful, but she never imagined anything like this. Even so, success has not spoiled Sara. Still single, she keeps to her old circle of frien

  29. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Assignment Case Problem 6.1, 6.2, 7.1, 7.2, 8.1, 8.2, 9.2 For more course tutorials visit www.uophelp.com Case Problem 6.1 Sara Decides to Take the Plunge Sara Thomas is a child psychologist who has built a thriving practice in her hometown of Boise, Idaho. Over the past several years she has been able to accumulate a substantial sum of money. She has worked long and hard to be successful, but she never imagined anything like this. Even so, success has not spoiled Sara. Still single, she keeps to her old circle of frien

  30. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Assignment Relative Performance Paper For more course tutorials visit www.uophelp.com FIN 402 Week 3 Assignment Relative Performance Paper

  31. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 6.2 Wally Wonders Whether There’s a Place for Dividends For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  32. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 7.1 Some Financial Ratios Are Real Eye-Openers For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  33. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 7.2 Doris Looks at an Auto Issue For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  34. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 8.1 Doris Looks at an Auto Issue For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  35. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 8.2 An Analysis of a High-Flying Stock For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  36. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 AssignmentCase Problem 9.2 Deb Takes Measure of the Market For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  37. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 DQ 1 For more course tutorials visit www.uophelp.com What factors must be taken into consideration when creating an investment portfolio? How must a portfolio’s components be weighted? 

  38. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 DQ 2 For more course tutorials visit www.uophelp.com Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in th

  39. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 DQ 3 For more course tutorials visit www.uophelp.com What factors must be taken into consideration when creating an investment portfolio? How must a portfolio’s components be weighted? 

  40. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Individual Assignment CAPM Web Exercise For more course tutorials visit www.uophelp.com FIN 402 Week 3 Individual Assignment CAPM Web Exercise Resource: Fundamentals of Investment Management Prepare a response to the following assignment: Web Exercise (Ch. 21) of Fundamentals of Investment Management, including calculations for each organization listed in Step 9

  41. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Weekly Problem Set For more course tutorials visit www.uophelp.com The Problem Set is provided to you to enable you to practice the concepts outlined in the textbook. Select THREE completed problems from the assignment and post your solutions to those problems. In your solutions, provide an explanation as to why you choose the answer. 1. Which of the following are assumptions of the simple CAPM model? 2. Consider th

  42. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 3 Weekly Question For more course tutorials visit www.uophelp.com The Problem Set is provided to you to enable you to practice the concepts outlined in the textbook. Select THREE completed problems from the assignment and post your solutions to those problems. In your solutions, provide an explanation as to why you choose the answer. 1. Which of the following are assumptions of the simple CAPM model? 2. Consider th

  43. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 Assignment Case Problem 10.1 Max and Veronica Develop a Bond Investment Program For more course tutorials visit www.uophelp.com The Problem Set is provided to you to enable you to practice the concepts outlined in the textbook. Select THREE completed problems from the assignment and post your solutions to those problems. In your solutions, provide an explanation as to why you choose the answer. 1. Which of the following are assumptions of the simple CAPM model? 2. Consider th

  44. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 Assignment Case Problem 10.1, 10.2, 11.1, 11.2 For more course tutorials visit www.uophelp.com FIN 402 Week 4 Assignment Case Problem 10.1 Max and Veronica Develop a Bond Investment Program FIN 402 Week 4 Assignment Case Problem 10.2 The Case of the Missing Bond Ratings FIN 402 Week 4 Assignment Case Problem 11.1 The Bond Investment Decisions of Dave and Marlene Carter FIN 402 Week 4 Assignment Case Problem 11.2 Grace Decides to Immunize Her Portfolio

  45. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 Assignment Case Problem 10.2 The Case of the Missing Bond Ratings For more course tutorials visit www.uophelp.com Case Problem 10.2 The Case of the Missing Bond Ratings It’s probably safe to say that there’s nothing more important in determining a bond’s rating than the underlying financial condition and operating results of the company issuing the bond. Just as financial ratios can be used in the analysis of common stocks, they can also be used in the analysis of bonds—a process we refer to as credit analysis. In credit analysis, attention is directed toward the basic liquidity and profitability of the firm, the extent to which the

  46. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 Assignment Case Problem 11.1 The Bond Investment Decisions of Dave and Marlene Carter For more course tutorials visit www.uophelp.com Case Problem 11.1 The Bond Investment Decisions of Dave and Marlene Carter Dave and Marlene Carter live in the Boston area, where Dave has a successful orthodontics practice. Dave and Marlene have built up a sizable investment portfolio and have always had a major portion of their investments in fixed-income securities. They adhere to a fairly aggressive investment posture and actively go after both attractive cur

  47. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 Assignment Case Problem 11.2 Grace Decides to Immunize Her Portfolio For more course tutorials visit www.uophelp.com Case Problem 11.2 Grace Decides to Immunize Her Portfolio Grace Hesketh is the owner of an extremely successful dress boutique in downtown Chicago. Although high fashion is Grace’s first love, she’s also interested in investments, particularly bonds and other fixed-income securities. She actively manages her own investments and over time has built up a substantial portfolio of securities. She’s well versed on the latest investment techniques and is not afraid to apply those procedures to her own inve

  48. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 DQ 1 For more course tutorials visit www.uophelp.com What are examples of active and passive portfolio management techniques? Why would a portfolio manager pursue active instead of passive techniques? 

  49. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 DQ 2 For more course tutorials visit www.uophelp.com Does international diversification enhance risk reduction? Why or why not? What measures may be taken to reduce risks of international portfolio investing?

  50. FIN 402 Inspiring Minds/uophelp.com FIN 402 Week 4 DQ 3 For more course tutorials visit www.uophelp.com What are unique risks associated with foreign investments? How might an investor protect his or her portfolio against such risks? Is it possible to protect a portfolio from all risk? 

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