1. Describe the two stage dividend, and two stage earnings valuation models. Explain for each the steps required to determine security prices. 2. Explain the following economic relationships: interest rates and stock prices; money supply and excess liquidity and stock price; government budget deficit and interest rates; government budget deficit and stock price; $ and trade balance; US versus foreign interest rates and the $; demographics and aging and stock prices. 3. Four stages in the life cycle of the industry and when to buy and sell stocks in an industry. 4. Discuss how the four major structural changes in the 1990's economy contributed to the bull stock market. 5. Define the value and growth styles of equity investing. Compare and contrast the characteristics of firms whose stocks will be selected under the two styles. 6. Compare and contrast the prudent investor rule versus prudent man rule pertaining to fiduciary duties of fund managers. 7. Explain how and why an investor will use commodity or financial futures to hedge or speculate. Describe the positions and how to calculate the number of contracts using stock index futures and T-bond futures. Explain why the formula for number of contracts need to be adjusted by beta or duration. 8. Define technical analysis and bull and bear market. Explain the following technical indicators: breadth of market index, most active list index, put to call volume, credit ratings default spread, moving averages, volume signals, blow off, selling climax, oscillators, stochastics. Explain what are the buy and sell signals for these indicators. 9. What are the five determinants of call and put option prices? Explain how these factors affect option price. Explain the upper bounds on call and put option price. What happens if the bounds are violated