Chapter 8 - Technical analysis- What is the underlying premise of technical analysis? How do technical analysts attempt to earn returns?
- How is volume exploited by technical analysts?
- How are support and resistance lines used to identify patterns in stock prices?
- What odd lot purchases and sales reveal to technical analysts?
- How do investors profit from falling stock prices?
- What was one of the first popular technical analysis techniques? What three market trends does this approach suggest?
Chapter 9 - Market efficiency- What are some issues that make testing for market efficiency difficult?
- Why is it plausible that there should be efficiency in the financial markets?
- What are the three forms of market efficiency?
- What type of information is embedded in each of the three forms?
- What are anomalies exist for each form of market efficiency?
- If the financial markets are efficient, what are the implications when choosing an investment strategy?
Chapter 10 - Bond valuation
- Illustrate the cash flows of coupon paying bonds.
- What is the relationship between interest rates and bond prices?
- What are the components that determine the nominal interest rate for a borrower?
- What are the four shapes of the term structure that have been experienced in the U.S.?
- What determines if a bond is selling at a premium, discount, or at par?
- Why would a borrower call a bond prior to its maturity?
- From the investor's point of view, compare a callable bond to a noncallable bond.
- What are two measures of duration? How is duration used to predict the sensitivity of bond prices to changes in interest rates?
- What are some factors that influence the duration of bonds?
Chapter 11 - Investment companies
- What are some of the benefits of placing our money with investment companies rather than investing the money ourselves?
- What are some common types of investment companies?
- What are some differences between closed end funds and open end funds?
- What are the sources of returns for mutual funds? How do these differ from closed and funds?
- Describe some of the fees and expenses in mutual funds.
- What are some common dimensions that differentiate equity funds? How about bond funds?
Chapter 12 - Markets and transactions
- What distinguishes primary and secondary market transactions?
- What is the difference between an IPO and a seasoned offering?
- What are some of the services provided by an investment bank in the primary market?
- Describe the process of issuing new securities to the public.
- What is the difference between a firm commitment and a best efforts offering? What are the advantages and disadvantages to both the issuing company and the investment banker? What are the pricing risks?
- How do stocks traded on the New York Stock Exchange and NASDAQ?
- What is the role of the specialist on the New York Stock Exchange?
Chapter 13 - Options
- What are rights given to call/put option holders?
- What are the obligations of sellers of call/put options?
- When do call/put option holders/writers profit? When do they lose?
- What are the advantages of investing in options vs. investing in a stock directly?
- What are some of the variables that determine the value of an option?
- What does the "moneyness" of an option refer to? When is a call/put option in the money?
Chapter 14 - Futures
- How are forwards and futures the same? How are they different?
- What features of futures reduce counterparty risk?
- How are forwards different from spot contracts?
|
|
