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Finance
- What are the major instruments traded in capital markets?
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- Which of the following is NOT a common element among financial planning models? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Asset requirements b с d e Stock split forecasts Pro forma statements Sales forecasts Economic assumptionsSolve this question by using FORMULA. [NOT EXCEL/NOT USING FINANCIAL CALCULATOR] Thank you so much.What is the limitation of Traditional approach of Financial Management? اخترأحد الخيارات a. All of the option b. More emphasis on long term problems c. Ignores allocation of resources d. One-sided approach
- Applying the capital asset pricing model requires that one find appropriate inputs for the risk-free rate, the market rate of return (and market risk premium), and beta. Why is beta, in particular, difficult to pin down? a. People don't have ready access to financial data and won't have any source for this information in the near future. b. The major internet sources of financial data are notoriously unreliable. c. Hackers have been known to manipulate financial data for their own purposes. d. People must rely on historical performance information, and they have to assume that historical relationships continue into the future.A. Briefly explain the problem of moral hazard in: (i) Equity financing (ii) Debt financingB. What is the adverse selection problem in financial markets and how can it be solved?Q1) Economies of scale * A) in the financial markets does not explain why financial intermediaries developed and have become such an important part of our financial structure B) can be used to an advantage by reducing transaction cost. C) both A and B of the above D) neither A nor B of the above. Q2. Adverse selection [can select more than 1 answer] * A) is a problem created by asymmetrical information before the transaction. B) can be solved by eliminating asymmetrical information. C) helps explain why banks prefer to make loans secured by collateral. D) helps explain why borrowers are willing to offer collateral to secure their promises to repay loans. Q3. Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders find it costly to monitor managers; thus, stockholders are reluctant to purchase equities. * A) principals; agents B) principals; principals C)…
- Which of the following is TRUE about liquidity? a. All assets should be put in liquid asset so that it is easy to use when necessary b. In most of the cases, the more liquid asset provides the lower return c. Investors should not care about liquidity in order to have a balanced portfolio investment d. Liquidity requirement does not have any impact on the return.Answer the situation. Compute for interest. Show your Complete Solution. I already provided the answer I just need the Solution and explanation. Answer: Bank A because it will yield less interest than bank B.1. Which of the following models for mathematics of the financial markets is dependent on expectations or probabilities of changes in the value of an underlying asset? A. Monte Carlo Simulation B. Black Scholes Model C. Cox-Ross-Rubinstein Model 2. Models for the financial markets are primarily used for all of the following, except, A. Algorithmic Trading B. Technical Analysis (Short term trading) C. Fundamental Analysis (Long term investing D. All of the above 3. Which among the following organizations use financial mathematics as part of their core operation? A. Investment banks B. Government C. Hedge funds D. All of the above 4. S1: Quantitative finance helps to allocate resources to provide the optimum returns. S2: Financial models are accurate. A. Both statements are true B. Both statements are false C.…
- Short Q/Ans: Answer shortly by just giving reasons Q: Indirect transfer through investment bankers is a major flow of funds in a financial market.Explain it? Q: Bonds are considered as less riskier instrument as compared to debentures. Being a rational investor do you support this statement or not? Provide logical arguments to support your verdictComment on the following statements with suitable example: i. The ratio return on assets has net income in the numerator and total assets in the denominator. Explain how each part of the ratio could cause return on assets to fall. ii. Explain how return on assets could decline, given an increase in net profit margin. iii. If quoted market prices are not available, a personal financial statement cannot be prepared. Comment.q15 Which type of brokerage account permits the broker to buy and sell shares for the investor without first contacting the investor for approval? a. Discretionary Account b. All the options are wrong c. Margin Account d. Cash Management Account q16 Buying assets that yield a return greater than the minimum acceptable hurdle rate is a part of which core principles of Finance. a. Cost principle b. Investment principle c. Dividend principle d. Financing principle