Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds c) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCL) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of similar risk bonds is 9%. What is the percentage price change of the bond if the market yield were to increase to 10%?
Q1: Define and differentiate between: a) Organized exchanges and Over the counter markets b) Open Ended vs Closed Ended Mutual Funds c) Moral Hazard and Adverse selection Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance? Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons. Q4: What value do mutual funds add for individual investors and how? Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis. Q6: Last year Fauji Fertilizer Company Limited (FFCL) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%? Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of similar risk bonds is 9%. What is the percentage price change of the bond if the market yield were to increase to 10%?
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
Problem 6CQQ
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Question
Q1: Define and differentiate between:
a) Organized exchanges and Over the counter markets
b) Open Ended vs Closed Ended Mutual Funds
c) Moral Hazard and Adverse selection
Q2: What is meant by asset transformation and how is it the basis for differentiating between indirect finance and direct finance?
Q3: What are the three main reasons for regulating financial markets and institutions? Also list the major regulation examples under each of the three reasons.
Q4: What value do mutual funds add for individual investors and how?
Q5: Using the relevant financial securities and institutions, explain the chain of events which lead to the 2007 global financial crisis.
Q6: Last year Fauji Fertilizer Company Limited (FFCL) gave an annual dividend per share of Rs. 8.85 which is expected to grow at 5%, forever. Calculate the per share price of the stock if its required rate of return is 14%?
Q7: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of similar risk bonds is 9%. What is the percentage price change of the bond if the market yield were to increase to 10%?
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