I need help on writing papers based on concepts of Investments. The text book we use is INVESTMENTS - 10th edition Bodie , Kane, Marcus.

I need to write paper using concepts from any of the following topics and its relation to a recent news item in Wall street Journal - see in particular the sections titled "Markets"and"Business". You can also reference other high quality financial journalism sources such as the FinancialTimes, The Economist.

• Portfolio Theory and Practice ,
• Risk,Return,andtheHistoricalRecord
• CapitalAllocationtoRiskyAssets
• OptimalRiskyPortfolios
• IndexModels
• The Capital Asset Pricing Model

(Thesuggestedlengthguidelineisonepagedoublespacedofyourwriting+howevermuchspaceyouneedtoprovideacopy

ofyourchosennewsitem).

Ineachresponsepaper

(1)explainthetheoryandempiricalevidenceforthecourseconceptchosen(50%)and

(2)showhowitrelatestoarecentiteminthenews(50%).Pleaseprovideacopyofthenewsitem.

Examples:

A pharmaceutical company announces record earnings, but its stock declines. Ideas from the course can help us understand this event. You might spend a couple paragraphs describing how stock prices incorporate investor expectations. You might then describe how if investors expected

$50 earnings per share, but the actual amount is $45 earnings per share, then the stock price will fall--even if $45 of earnings per share is a record. An outstanding answer might also include a

discussion of "post-earnings announcement drift," an empirical finding that illustrates the limits of efficient markets models.

Alternately, you can discuss news items that challenge ideas . For example, Capital Asset Pricing Model (CAPM) . While the CAPM is a useful benchmark, it has some well-known empirical issues; You might choose a news item that challenges the CAPM, e.g. an article about the proliferation of "smart beta" funds. Please be specific about how the model is wrong.