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BUS 405 Entire Course

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BUS 405 Week 1 DQ 1 Blumes Formula, Allocation, and Selection
BUS 405 Week 1 DQ 2 Money Market Funds
BUS 405 Week 1 Quiz Chapters 1-4
BUS 405 Week 1 Assignment Annualized Returns Chapter 3 problem 18
BUS 405 Week 2 DQ 1 Primary and Secondary Markets
BUS 405 Week 2 DQ 2 Contrarian Investing
BUS 405 Week 2 Assignment Abbott Laboratories Problem
BUS 405 Week 2 Quiz Chapters 5-8

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BUS 405 Week 1 Assignment Annualized Returns Chapter 3 proble

m
18
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Suppose you have $28,000 to invest. Youre considering Miller-Moore Equine
Enterprises (MMEE), which is currently selling for $40 per share. You also notice
that a call option with a $40 strike price and six months to maturity is available.
The premium is $4.00. MMEE pays no dividends. What is your annualized return
from these two investments if, in six months, MMEE is selling for $48 per share?
What about $36 per share?

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BUS 405 Week 1 DQ 1 Blumes Formula, Allocation, and Selection

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Blumes Formula, Allocation, and Selection. From Chapter 1, answer Concept
Question 5: What is Blumes formula? When would you want to use it in practice?
Also, from Chapter 2, answer Concept Question 4: What is the difference between
asset allocation and security selection? Remember to complete all parts of the
questions and support your answers with examples from the text and other
resources. Respond to at least two of your classmates postings outside of your own
thread.

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BUS 405 Week 1 DQ 2 Money Market Funds

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Money Market Funds. From Chapter 4, complete Problem 4: The Aqua Liquid Assets
Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets
held by this fund appreciated by 2.5 percent. If you had invested $50,000 in this
fund at the start of the year, how many shares would you own at the end of the
year? What will the NAV of this fund be at the end of the year? Why? Remember to
complete all parts of the question, show your work, and report the results of your
analysis. Respond to at least two of your classmates postings outside of your own
thread.

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BUS 405 Week 1 Quiz Chapters 1-4

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BUS 405 Week 1 Quiz Chapters 1-4

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BUS 405 Week 2 Assignment Abbott Laboratories Problem

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Abbott Laboratories Problem. After reading the Value Line figures and information on
Abbott Laboratories in the Questions and Problems section of Chapter 6 (just
before Problem 27), complete Problems 27, 28, 29, 30, and 31 and submit to your
instructor. Show your calculations and in your response to problem 31 write a 100
to 200 word defense of your position as to the value of Abbott Laboratories stock at
its current price of $50 per share.

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BUS 405 Week 2 DQ 1 Primary and Secondary Markets

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Primary and Secondary Markets. Complete Concept Question 1 from Chapter 5: If you
were to visit your local Chevrolet retailer, there is both a primary and a secondary
market in action. Explain. Is the Chevy retailer a dealer or a broker? Remember to
complete all parts of the question and support your answers with examples from the
text and other resources. Respond to at least two of your classmates postings
outside of your own thread.

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BUS 405 Week 2 DQ 2 Contrarian Investing

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Contrarian Investing. Complete Concept Question 9 from Chapter 8: What does it
mean to be a contrarian investor? How would a contrarian investor use technical
analysis? Post your answers to the discussion board. Remember to complete all
parts of the question and support your answers with examples from the text and
other resources. Respond to at least two of your classmates postings outside of
your own thread.

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BUS 405 Week 2 Quiz Chapters 5-8

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BUS 405 Week 2 Quiz Chapters 5-8

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BUS 405 Week 3 Assignment Bootstrapping Chapter 10 Problem 31

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Because you can observe all of the variables except r2, the spot rate for two years, you
can solve for this interest rate. Suppose there is a zero coupon bond with one year
to maturity that sells for $949 and a two-year bond with a 7.5 percent coupon paid
annually that sells for $1,020. What is the interest rate for two years? Suppose a
bond with three years until maturity and an 8.5 percent annual coupon sells for
$1,029. What is the interest rate for three years?

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BUS 405 Week 3 DQ 1 Forward Interest Rates

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Forward Interest Rates. Complete Problem 16 from the Questions and Problems
section of Chapter 9: According to the pure expectations theory of interest rates,
how much do you expect to pay for a one-year STRIPS on February 15, 2011?
What is the corresponding implied forward rate? How does your answer compare
to the current yield on a one-year STRIPS? What does this tell you about the
relationship between implied forward rates, the shape of the zero coupon yield
curve, and market expectations about future spot interest rates? Remember to
complete all parts of the questions, and report the results of your analysis. Respond
to at least two of your classmates postings outside of your own thread.

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BUS 405 Week 3 DQ 2 Bond Prices versus Yields

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Bond Prices versus Yields. Complete Concept Question 9 of Chapter 10: (a) What is
the relationship between the price of a bond and its YTM? (b) Explain why some
bonds sell at a premium to par value, and other bonds sell at a discount. What do
you know about the relationship between the coupon rate and the YTM for
premium bonds? What about discount bonds? For bonds selling at par value? (c)
What is the relationship between the current yield and YTM for premium bonds?
For discount bonds? For bonds selling at par value?

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BUS 405 Week 3 Quiz Chapters 9-10

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BUS 405 Week 3 Quiz Chapters 9-10

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BUS 405 Week 4 Assignment Performance Metrics Chapter 13 Prob

lem
22
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Performance Metrics. Complete Problem 22 in the Questions and Problems section of
Chapter 13 (shown below). When you pick the best choice for your portfolio,
defend your decision in a 100 - 200 word essay.
You have been given the following return information for two mutual funds (Papa and
Mama), the market index, and the risk-free rate. Year
Papa Fund
Mama Fund
Market

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BUS 405 Week 4 DQ 1 Expected Returns and Deviation

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Expected Returns and Deviation. Complete Problems 1, 2, and 3 from the Questions
and Problems section of Chapter 11 (shown below). Remember to complete all
parts of the questions, and report the results of your analysis. Respond to at least
two of your classmates postings outside of your own thread.
a. Use the following information on states of the economy and stock returns to
calculate the expected return for Dingaling Telephone.
State of Economy
Probability of State of the Economy
Security Return if State Occurs

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BUS 405 Week 4 DQ 2 Portfolio Weights

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Portfolio Weights. Complete Problem 10 from the Questions and Problems section of
Chapter 12: A stock has a beta of .9 and an expected return of 9 percent. A risk-free
asset currently earns 4 percent.
a. What is the expected return on a portfolio that is equally invested in the two assets?
b. If a portfolio of the two assets has a beta of .5, what are the portfolio weights?
c. If a portfolio of the two assets has an expected return of 8 percent, what is its beta?

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BUS 405 Week 4 Quiz Chapters 11-13

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BUS 405 Week 4 Quiz Chapters 11-13

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BUS 405 Week 5 DQ 1 Hedging with Futures

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Hedging with Futures. Complete Concept Question 7 from Chapter 14: The town of
South Park is planning a bond issue in six months and Kenny, the town treasurer, is
worried that interest rates may rise, thereby reducing the value of the bond issue.
Should Kenny buy or sell Treasury bond futures contracts to hedge the impending
bond issue?

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BUS 405 Week 5 DQ 2 Option Strategies

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Option Strategies. Complete Concept Question 12 from Chapter 15: Recall the options
strategies of a protective put and covered call discussed in the text. Suppose you
have sold short some shares of stock. Discuss analogous option strategies and how
you would implement them. (Hint: Theyre called protective calls and covered
puts.) Remember to complete all parts of the question and support your answers
with examples from the text and other resources. Respond to at least two of your
classmates postings outside of your own thread.

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BUS 405 Week 5 Final Project Construct a well-diversified portfolio

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Focus of the Final Project
The student will construct a well-diversified portfolio using an initial investment stake
of $50,000 (the portfolio should use 95% of the fund, but they may not use more
than $50,000). The student may include stocks, common or preferred; bonds,
corporate or U.S. Treasury bonds; mutual funds; and futures contract or options.
The student will use the closing prices from the first day of the class to determine
the price of each issue.

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