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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
BUS 405 Week 3 DQ 1 Forward Interest Rates

## BUS 405 Week 1 Assignment

Annualized Returns Chapter 3 problem
18

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Annualized Returns Complete problem 18 in Chapter 3 (shown
below) and submit to the instructor. Show your work to find the
annualized return for each of the listed share prices. Write a 100 word
analysis of the process to calculate these annualized returns.
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

## 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
resources. Respond to at least two of your classmates postings

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

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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.
27. What is the sustainable growth rate and required return for Abbott
Laboratories? Using these values, calculate the 2010 share price of

## 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
other resources. Respond to at least two of your classmates postings

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
discussion board. Remember to complete all parts of the question and
resources. Respond to at least two of your classmates postings

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## BUS 405 Week 3 Assignment

Bootstrapping Chapter 10 Problem 31

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## Bootstrapping Complete problem 31 of Chapter 10 (shown below),

manipulation of the price equation for the bond. In addition to solving
the problem, write a 100 to 200 word essay on the term structure of
fixed income securities.

## One method used to obtain an estimate of the term structure of

interest rates is called bootstrapping. Suppose you have a one-year
zero coupon bond with a rate of r1 and a two-year bond

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
STRIP on February 15, 2011? What is the corresponding implied
forward rate? How does your answer compare to the current yield on a
one-year STRIP? 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

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?
Remember to complete all parts of the questions, and report the
results of your analysis. Respond to at least two of your classmates

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## BUS 405 Week 4 Assignment

Performance Metrics Chapter 13
Problem 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

## 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

## a. Use the following information on states of the economy and stock

returns to calculate the expected return for Dingaling Telephone.
State of Economy

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

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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?
Remember to complete all parts of the question and support your
answers with examples from the text and other resources. Respond to

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
Respond to at least two of your classmates postings outside of your

## 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. Only whole lots of any issues may be acquired,
that is no less than 100 shares of common or preferred stock; no less