EXPLAIN YOUR UNDERSTINDING OF EQUITY INSTRUMENTS AND IDENTIFY THE MARKETS WHERE EQUITY INSTRUMENTS ARE TRADED

Q: Mortgage backed securities pass through all payments of interest and principal received on a pool of…

A: Mortgage-backed securities are generally the variations of assets-backed securities formed by…

Q: Economists refer to the conflict between the interests of shareholders and the interests of top…

A: Different parties have different interests in a particular organization.

Q: 11. Which of the following statements is TRUE? (A) ETFS consist of funds that invest only in stocks.…

A: An Exchange Traded Fund is a fund associated with the price, It allows investors to easily sell or…

Q: Ms. Huma is expecting a rise in the share price of Bank Muscat. But, currently she does not have the…

A: Since it is given in the question that Ms. Huma is expecting a rise in the share price of bank…

Q: Discuss the rationale for expecting an efficient capital market. What factor would you look for to…

A: Meaning of Efficient Capital Market: The term efficient capital market refers to the situation…

Q: How can the existence of asymmetric information providea rationale for government regulation of…

A: Asymmetric information is a situation the information possessed by the parties is not symmetric. In…

Q: 9 Explain your understanding of equity instruments and identify the markets where equity instruments…

A: Equity Instruments  Any transaction that shows the remaining shares in a company's assets after all…

Q: s there any over-the-counter market of stocks/bonds/derivatives in Pakistan? If yes, then explain…

A: Yes, there is an OTC (Over The Counter) market for stocks/bonds/derivatives in Pakistan. The Karachi…

Q: Please describe in as much details as possible the different types of private equity fund asset…

A: Private equity funds are pools of capital that are invested in companies that offer a high rate of…

Q: What are the major differences between a regulated utility and a free enterprise corporation in…

A: These agencies are in charge of setting their rates, the terms of their consumer service, their…

Q: You are a senior management position in a leading international funds management firm. Your Board of…

A: Markets refer to the place or platform that exists for the purpose of economic transactions. It…

Q: Question 4 Using appropriate example, differentiate between commodity and financial derivatives.

A: In economics, a commodity is an economic good, generally, a resource, that has full or substantial…

Q: What are the applications of partial derivatives in economics?

A: The derivative of a function of a single variable that depicts quickness of change in function value…

Q: Q# 3. (a). List out the rules of derivatives (differentiation) and also explain economic application…

A: Following are the rules of differentiation: Sum/Difference rule:…

Q: Discuss how the concepts of pure security,short selling and no arbitrage profit help establish and…

A: Capital market equilibrium requires that market prices be set so that supply equals demand for each…

Q: 25 - According to the Capital Asset Pricing Model (CAPM), a security with a a) negative alpha is…

A: The capital asset pricing model describes the relationship between risk and expected return…

Q: calculate the The following: are made semi-annually, Assuming that the interest payments are made…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: If the State of California issued a state government bond with a BB- rating, then their bonds should…

A: Bonds refer to the securities issued by the government or the multi-national corporations to raise…

Q: A(n) is a tradable contract that entitles its owner to certain rights and allows direct finance to…

A: In finance, there are many types of assets and liabilities.

Q: Explain how shares of stocks differ from mutual funds.

A: A stock (also referred to as equity) is a security reflecting the ownership of a fraction of a…

Q: How might the magnitude of the market risk premium impact someone's desire to buy stocks?

A: A risk premium is the projected investment return on an asset that is higher than the risk-free rate…

Q: Question 3- What type of financial institutions may offer the services for reception and…

A: Savings and investments are guided between providers with capacity to lend or invest through capital…

Q: Mention the four main financial derivatives and tell when each is good for strategic financial…

A: Those financial instruments whose price is determined by the value of another asset are termed as…

Q: Explain why you agree or disagree with the following statements: A. “A bond issued by a corporation…

A: The word "risk free" refers to assets that are deemed to be sufficiently stable that investors may…

Q: Public Companies must file required forms through EDGAR. What are the most important forms, subject…

A: The Securities and Exchange Commission (SEC) requires public companies, some corporate insiders, and…

Q: True or False: With a discount bond, the return on thebond is equal to the rate of capital gain.

A: Financial economics deals with all the instruments which are used in several markets for speculative…

Q: Identify the advantages and disadvantages of each (repurchase agreements and securities)

A: Repurchase agreements are also called 'Repo.' The repos are short borrowings that individuals use in…

Q: Define asset and liability

A: An asset is a property owned by an individual. It can be measured in terms of money and is…

Q: he demand curve and supply curve for a No-year discount bond with a face value f $2,420 are…

A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…

Q: In June 2020, Singapore Airlines Limited undertook a renounceable rights issue ofnew ordinary shares…

A: Given that, In June 2020, Singapore Airlines Limited embraced a renounceable rights issue ofnew…

Q: The ___________ is the largest and best-known securities exchange.

A: Post BREXIT, after London losing its once acclaimed post of being a contender to the financial…

Q: The purpose of the SEC Code of Corporate Governance is to promote the developments of a strong…

A: Corporate Governance is the system by which the companies are directed and controlled. The boards of…

Q: Explain the difference between Initial Margin and Maintenance margin in stock trading.

A: The stock market comprehensively alludes to the assortment of trades and different settings where…

Q: What are the measurement and important key points of financial instruments - presentation PAS 32?

A: A financial instrument is a contract between two parties or entities that has a monetary value…

Q: When tensions rise or a war erupts between the United States of America & China, bond prices in…

A: Bond Price: It refers to the price of the bonds which is the discount value of the cash which will…

Q: Explain LIFO reserve and LIFO liquidation and their eff ects on financial statements and ratios

A: A decline in the LIFO reserve from a prior period is an indication that LIFO liquidation has…

Q: Provide a general overview of Integrated Financial Management Information System (IFMIS)

A: Financial Management Information Systems (FMIS) support the robotization and reconciliation of…

Q: Identify two (2) derivative investment products and how they allow investors to hedge against risk…

A: A derivative is a contract between two or more parties whose value is determined by an underlying…

Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…

A: A share is the basic unit in which the capital of a company is divided. The people who hold shares…

Q: 49) Everything else held constant, an increase in the riskiness of bonds relative to alternative…

A: Equilibrium in the bonds market occurs at the intersection of demand and supply curves of bonds.

Q: (1) which of the following assets is traded only in an over the caunter market? (a) stocks (b)…

A: Over the market referred to the market where you have to buy or sell securities by physical…