FIN 301

For an investment company, the primary source of funds is____________________ and the primary use of funds for an investment company is__________________. - Answer Shares; Securities For an insurance company, the primary source of funds is___________ and the primary use of funds for an insurance company is __________________. - Answer Reserves; Bonds For a commercial bank, the primary source of funds is______________ and the primary use of funds a commercial bank is________________. ...

Debtholders - Answer people who lent the company money equity investors - Answer own shares of stock in the company debenture bond - Answer a "standard" bond that is typically unsecured subordinate bond - Answer ranks lower than other debt the issuer may have callable bonds - Answer gives the issuer the option to repurchase the bond before the maturity date convertible bond - Answer the bondholder has the option to convert the bond into common stock bond...

Finance - Answer involves the management of money -amount, time, risk Three areas of Finance - Answer Corporate Finance- businesses Institutions and Markets- financial markets Investments- investors corporate finance - Answer The activities involved in managing money in a business environment. institutions and markets - Answer Examines the structure of capital markets, the role of financial institutions, the process of financial intermediation and how money flows into the...

Which of the following is a primary disadvantage to investing in a hedge fund? - Answer illiquidity Which of the following is true concerning the difference between simple and compound interest? - Answer with simple interest, the assumption is that interest earned on the original investment is not reinvested. With compound interest, interest is reinvested. Mr.Wonderful needs $2,500,000 upon retirement in 10 years to live comfortably. He can invest $125,000 a year to his retirement. W...

Which of the following asset classes would you expect to have the highest expected return and standard deviation? Treasury bills Government bonds Corporate bonds Large company stocks Small company stocks - Answer Small company stocks Calculate the compound annual return on an investment that was purchased at $20 and sold 5 years later for $40. 14.9% 100% 20% 4.6% 16.8% - Answer 14.9% Given the following information, calculate the Fund's alpha: T-Bill ...