Question
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
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![]() |
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