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BUS 405 EDU professional tut

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BUS 405 Entire Course

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BUS 405 Week 1 DQ 1 Blumes Formula, Allocation, and Selection


BUS 405 Week 1 DQ 2 Money Market Funds
BUS 405 Week 1 Quiz Chapters 1-4
BUS 405 Week 1 Assignment Annualized Returns Chapter 3 proble
m 18
BUS 405 Week 2 DQ 1 Primary and Secondary Markets
BUS 405 Week 2 DQ 2 Contrarian Investing
BUS 405 Week 2 Assignment Abbott Laboratories Problem
BUS 405 Week 2 Quiz Chapters 5-8

BUS 405 Week 1 Assignment A


nnualized Returns Chapter
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3

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Annualized Returns. Complete problem 18 in Chapter 3 (shown b


elow) and submit to the instructor. Show your work to find the ann
ualized return for each of the listed share prices. Write a 100 word
analysis of the process to calculate these annualized returns.

BUS 405 Week 1 DQ 2 Money


Market Funds

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Blumes Formula, Allocation, and Selection. From Chapter 1, an


swer Concept Question 5: What is Blumes formula? When would y
ou want to use it in practice? Also, from Chapter 2, answer Concept
Question 4: What is the difference between asset allocation and se
curity selection? Remember to complete all parts of the questions
and support your answers with examples from the text and other r
esources. Respond to at least two of your classmates postings out
side of your own thread.

BUS 405 Week 1 Quiz Chapte


rs 1-4

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Money Market Funds. From Chapter 4, complete Problem 4: The


Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 pe
r share. During the year, the assets held by this fund appreciated b
y 2.5 percent. If you had invested $50,000 in this fund at the start o
f the year, how many shares would you own at the end of the year?
What will the NAV of this fund be at the end of the year? Why? Rem
ember to complete all parts of the question, show your work, and r
eport the results of your analysis. Respond to at least two of your c
lassmates postings outside of your own thread.

BUS 405 Week 1 Quiz Chapter


s FOR
1-4
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BUS 405 Week 1 Quiz Chapters 1-4

BUS 405 Week 2 Assignment


Abbott
Laboratories
Proble
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Abbott Laboratories Problem. After reading the Value Line figure


s and information on Abbott Laboratories in the Questions and Pro
blems section of Chapter 6 (just before Problem 27), complete Pro
blems 27, 28, 29, 30, and 31 and submit to your instructor. Show y
our calculations and in your response to problem 31 write a 100 to
200 word defense of your position as to the value of Abbott Labora
tories stock at its current price of $50 per share.

BUS 405 Week 2 DQ 1 Primar


y FOR
and
Markets
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Primary and Secondary Markets. Complete Concept Question 1 f


rom Chapter 5: If you were to visit your local Chevrolet retailer, the
re is both a primary and a secondary market in action. Explain. Is t
he Chevy retailer a dealer or a broker? Remember to complete all
parts of the question and support your answers with examples fro
m the text and other resources. Respond to at least two of your cla
ssmates postings outside of your own thread.

BUS 405 Week 2 DQ 2 Contrar


ian
Investing
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Contrarian Investing. Complete Concept Question 9 from Chapte


r 8: What does it mean to be a contrarian investor? How would a c
ontrarian investor use technical analysis? Post your answers to the
discussion board. Remember to complete all parts of the question
and support your answers with examples from the text and other r
esources. Respond to at least two of your classmates postings out
side of your own thread.

BUS 405 Week 2 Quiz Chapter


s FOR
5-8
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BUS 405 Week 2 Quiz Chapters 5-8

BUS 405 Week 3 DQ 1 Forward


Rates
Interest
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Forward Interest Rates. Complete Problem 16 from the Question


s and Problems section of Chapter 9: According to the pure expect
ations theory of interest rates, how much do you expect to pay for
a one-year STRIPS on February 15, 2011? What is the correspondin
g implied forward rate? How does your answer compare to the cur
rent yield on a one-year STRIPS? What does this tell you about the
relationship between implied forward rates, the shape of the zero
coupon yield curve, and market expectations about future spot int
erest rates? Remember to complete all parts of the questions, and
report the

BUS 405 Week 3 DQ 1 Forward


Rates
Interest
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Forward Interest Rates. Complete Problem 16 from the Question


s and Problems section of Chapter 9: According to the pure expect
ations theory of interest rates, how much do you expect to pay for
a one-year STRIPS on February 15, 2011? What is the correspondin
g implied forward rate? How does your answer compare to the cur
rent yield on a one-year STRIPS? What does this tell you about the
relationship between implied forward rates, the shape of the zero
coupon yield curve, and market expectations about future spot int
erest rates? Remember to complete all parts of the questions, and
report the results of your analysis. Respond to at least two of your
classmates postings outside of your own thread.

BUS 405 Week 3 DQ 2 Bond Pr


ices
versus
Yields
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Bond Prices versus Yields. Complete Concept Question 9 of Chap


ter 10: (a) What is the relationship between the price of a bond and
its YTM? (b) Explain why some bonds sell at a premium to par value
, and other bonds sell at a discount. What do you know about the r
elationship between the coupon rate and the YTM for premium bo
nds? What about discount bonds? For bonds selling at par value?
(c) What is the relationship between the current yield and YTM for
premium bonds? For discount bonds?

BUS 405 Week 3 Quiz Chapter


s FOR
9-10
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BUS 405 Week 3 Quiz Chapters 9-10

BUS 405 Week 4 Assignment Pe


rformance Metrics Chapter 13

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Performance Metrics. Complete Problem 22 in the Questions and


Problems section of Chapter 13 (shown below). When you pick the
best choice for your portfolio, defend your decision in a 100 - 200
word essay.
You have been given the following return information for two mutu
al funds (Papa and Mama), the market index, and the risk-free rate.
Year
Papa Fund
Mama Fund
Market
Risk-Free

BUS 405 Week 4 DQ 1 Expecte


d
Returns
Deviation
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Expected Returns and Deviation. Complete Problems 1, 2, and 3


from the Questions and Problems section of Chapter 11 (shown be
low). Remember to complete all parts of the questions, and report
the results of your analysis. Respond to at least two of your classm
ates postings outside of your own thread.

BUS 405 Week 4 DQ 2 Portfol


io
Weights
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Portfolio Weights. Complete Problem 10 from the Questions and


Problems section of Chapter 12: A stock has a beta of .9 and an ex
pected return of 9 percent. A risk-free asset currently earns 4 perc
ent.
a. What is the expected return on a portfolio that is equally investe
d in the two assets?
b. If a portfolio of the two assets has a beta of .5, what are the port
folio weights?
c. If a portfolio of the two assets has an expected return of 8 perce
nt, what is its beta?

BUS 405 Week 4 Quiz Chapter


s FOR
11-13
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BUS 405 Week 4 Quiz Chapters 11-13

BUS 405 Week 5 DQ 1 Hedging


Futures
with
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Hedging with Futures. Complete Concept Question 7 from Chapt


er 14: The town of South Park is planning a bond issue in six mont
hs and Kenny, the town treasurer, is worried that interest rates ma
y rise, thereby reducing the value of the bond issue. Should Kenny
buy or sell Treasury bond futures contracts to hedge the impendin
g bond issue? Remember to complete all parts of the question and
support your answers with examples from the text and other reso
urces. Respond to at least two of your classmates postings outside
of your own thread.

BUS 405 Week 5 DQ 2 Option


Strategies
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Option Strategies. Complete Concept Question 12 from Chapter 1


5: Recall the options strategies of a protective put and covered call
discussed in the text. Suppose you have sold short some shares of
stock. Discuss analogous option strategies and how you would imp
lement them. (Hint: Theyre called protective calls and covered put
s.) Remember to complete all parts of the question and support yo
ur answers with examples from the text and other resources. Resp
ond to at least two of your classmates postings outside of your ow
n thread.

BUS 405 Week 5 Final Project Con


struct
a CLASSES
well-diversified
portfo
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lio

Focus of the Final Project


The student will construct a well-diversified portfolio using an initia
l investment stake of $50,000 (the portfolio should use 95% of the f
und, but they may not use more than $50,000). The student may in
clude stocks, common or preferred; bonds, corporate or U.S. Treas
ury bonds; mutual funds; and futures contract or options. The stud
ent will use the closing prices from the first day of the class to dete
rmine the price of each issue.

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