1.In theory, the MARKET includes:

All global currencies

All stock markets around the world

All metals in the world

All global real estate

All bond markets around the world

2.In practice, market indexes contain only a selected sample of the theoretical MARKET. A practical market index is said to be 'good', under the following conditions.

The sample companies used for measuring the index values should be large-cap stocks

The index is constructed as price-weighted

The index is constructed as a value-weight index to capture al investment opportunities

The sample companies used to obtain the index values, should be large relative to the MARKET

3.The most widely used and well-respected market index construction is the:

Equally weighted

Value-Weighted

price-weight index

geometrically-weighted

4.The overriding issues that prevent World Markets from achieving Global Market Efficiency, can be best summarized by two words: (Select the two words)

Integrated Markets

Language barriers

Segmented Markets

Political Risks

Interim Payment Risk

Legal Restrictions

5.The main underlying reason for the banking collapse in 2008 is:

Large customers withdrawing cash

Impact of Interest Parity equilibrium forces

Heavy lending to unqualified customers

High interest rates

Heavy competition from Credit Unions and Savings & Loan

6.The strongest form of the efficient market hypothesis, is illegal in many countries, including the United States. The strong form of EMH states:

A Market is fully efficient when market prices instantly reflect all past price information, all publicly available information and all PRIVATELY held information.

a) In 80 characters or less, make one argument supporting the idea to keep insider trading illegal.

b) In 80 characters or less, make one argument supporting the idea to make insider trading legal.

Foreign Portfolio #1

Returns

Malaysian Investor in Japan

Holding Period: 15-Sep to 10-Nov

Enter all solutions with the appropriate identifier, e.g. %, X

7.Begin an evaluation of the FP#1 return parameters by determining the capital gain or loss on the Malaysian investor's long margined position in Mitsui stock, i.e. pfs#1?

8.What is the Malaysian investor's dividend yield on the long margined position in Matsui stock, d#1?

9.The Malaysian investor will need the currency quote for fx#1, expressed as:

MYR/USD

JPY/USD

MYR/JPY

JPY/MYR

10.The currency position for the Malaysian investor is initially establish as:

Short

Long

Kuala Mitsui in Mitsui in Nikki 400 taJPY () Ringgit (RM) Index MYR/US MYR FX JPY FX Index Index Lumpur JPY/USD Index 0 15-Sep 6290.69314.535 1962.871768.1195.814.2815 85.63591.68 122-Sep6,616.14330.8071999.491782.9193.15 45345 84.89291.78 229-Sep 7,070.38353.519 2016.421732.4490.644.5161 84.016 91.9 3 6-Oct 6,539.13 326.956 1964.161717.25 96.27 4.897985.839 91.65 520-Oct6,390.70 6 27-Oct6,547.04 91.39 91.35 8 10-Nov 6714.84 .742 2035.92 1793.52 101.33 4.7866 80.635 92.42 Japanese Malaysian MYR Malaysian ringgit JPY Japanese yen Stock Index Stock