Finance. Personal Financial Planning

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Enfurq_87

Business Finance

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In this assignment, I need you to answer those questions that have marks on it. Which are 1,2,3,5,6,7,8,9,10, and 13. Thank you!

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tab S M A N caps lock 300 Part Three Portfolio Management problems 10 1 investorguide.com Investor Information While the previous website is more educational, this site offers current market infor- mation, quotes and charts, news and comments, and research company information. It also has a glossary of finance terms. Websites of U.S. and world stock exchanges include CFP® nyse.com NYSE Euronext This is the website for the multiple exchanges, including the New York Stock Exchange, NYSE Euronext, NYSE Amex, and NYSE Arca. nasdaq.com NASDAQ tse.or.jp/english Tokyo Stock Exchange londonstockexchange.com London Stock Exchange Certificati Examinat Question and Prol uestions 1. Explain why under CAPM company risk can be diversified away. 2. Under the EMH, can you outperform the market? 3. Under the weak form of the EMH, if you are given the following recent day price performance: Yesterday Today Day 2 Days Ago The Day before Yesterday 8 9 7 Price 6 is the likely future performance higher than nine? Why? 4. Under the semistrong form of the EMH, should you read an annual report? Why? 5. Investing abroad has substantial individual asset risk. Why invest in it then? 6. Why can real estate be an attractive portfolio holding? 7. What are the strengths of mutual funds? 8. What are the weaknesses of mutual funds? 9. What types of investments are most appropriate for short-term needs? 10. What kinds of investments are best suited to saving for the down payment on a house to be made in three years? 11. What types of investments are suited to retirement planning at age 67 assuming the person is 55 and has an average risk tolerance? 12. What are the advantages of a passive approach to investing? 13. How has mutual fund performance compared with overall indexes? Why do you that is the case? 14. How are income taxes determined for mutual funds? 15. Stock A and stock B have no correlation. Does that mean we don't have to include correlation in calculating portfolio return? Explain. 16. Stocks C and D move in opposite directions. Does that mean they have no Explain. think correlation?
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Personal Financial Planning

Q1
Under CAPM, firms’ risk can be diversified away because of the unsystematic risk.
Q2
Under EMH, it is not possible to outperform the market since the stock market prices is a perfect
replica of the reality.
Q3
No. As per EMH, the past information about returns, prices and volume do not a...


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