1. What are limit orders? Limit orders have 2 risks:
2. What is a GTC order?
3. What is important about the bid ask spread? Which do you pay ?
4. What is margin? Why is it important?
5. What is the effect of market wide maintenance margin calls?
6. What is the process to short a stock? Why is it more difficult to profit as a short?
7. What risk do short sellers face?
8. What is the difference between an open and closed mutual fund?
9. n/a What are 2 criticisms of HFT?
10. n/a What are 3 of the five HFT strategies?
11. n/a Why are HFT funds obsessed with latency?
12. n/a What is spoofing?
13. What advantages do mutual funds present to ordinary investors?
14. What are two disadvantanges of mutual funds?
15. Describe Morningstar style boxes and their use? The value of their star system ?
16. What are the advantages of ETFs over mutual funds?
17. M&A Arb requires what for the arb to work successfully?
18. What is the purpose of a roadshow?
19. Managers give good and bad reasons to merge:
20. Explain Hubris and its effect on valuation.
21. List 3 behavioral effects.
22. What is prospect theory and how does it impact mutual fund managers?
23. When should you measure performance with beta? Sharpe?
24. What can tracking error measure? What can the information ratio tell you?
25. Gamblers fallacy and recency effects are aspects of behavioral trading. Explain each.
26. n/a What is the buy write myth?
27. Describe short term and long term IPO returns?
28. n/a Most investment hedges require the use of financial derivatives. What are two non-derivative alternatives to lower volatility that operating firms may choose? Change contracts in operations, reduce leverage, choose to do nothing.
29. What are two contributions of Markowitz?
30. What is an advantage of CAPM?
31. What are two predications of CAPM?