UMUC FIn610 final exam 2015

Jul 3rd, 2016
Studypool Tutor
Price: \$15 USD

Tutor description

Question Top of Form 1. Which of the following is true? A random walk for stock price changes is inconsistent with observed patterns in price changes. If the stock market follows a random walk, price changes should be highly correlated. If the stock market is weak form efficient, then stock prices follow a random walk. All of these. Both If the stock market follows a random walk, price changes should be highly correlated; and If the stock market is weak form efficient, then stock prices follow a random walk. 2. You are planning a trip to Australia. Your hotel will cost you A\$150 per night for five nights. You expect to spend another A\$2,000 for meals, tours, souvenirs, and so forth. How much will this trip cost you in U.S. dollars given the following exchange rates? \$1,926 \$2,007 \$2,782 \$2,856 \$3,926 3. A 12-year, 5% coupon bond pays interest annually. The bond has a face value of \$1,000. What is the change in the price of this bond if the market yield rises to 6% from the

Word Count: 1564
Showing Page: 1/7
UMUC FIn610 final exam 2015Report this Question as InappropriateQuestionTop of Form1. Which of the following is true?A random walk for stock price changes is inconsistent with observed patterns in price changes.If the stock market follows a random walk, price changes should be highly correlated.If the stock market is weak form efficient, then stock prices follow a random walk.All of these.Both If the stock market follows a random walk, price changes should be highly correlated; andIf the stock market is weak form efficient, then stock prices follow a random walk.2. You are planning a trip to Australia. Your hotel will cost you A\$150 per night for five nights.You expect to spend another A\$2,000 for meals, tours, souvenirs, and so forth. How much willthis trip cost you in U.S. dollars given the following exchange rates?\$1,926\$2,007\$2,782\$2,856\$3,926[(A\$1505) + A\$2,000](\$1A\$1.4278) = \$1,9263. A 12-year, 5% coupon bond pays interest annually. The bond has a face value of \$1,000. Whatis the change in the price of this bond if the market yield rises to 6% from the current yield of4.5%?11.11% decrease12.38% decrease12.38% increase14.13% decrease14.13% increaseA -\$129.43 or -12.38% change occurs in the price of this bond when themarket yield rises to 6%from a current yield of 4.5%Bond price at 4.5%:Bond Value = \$50[{1-(1/1.045^12)}/.045] + (\$1000/1.045^12)BV = \$50(9.12) + \$589.66BV = \$455.93 + \$589.66 = \$1045.59Bond price at 6%:Bond Value

Review from student

Studypool Student
" Good stuff. Will use again. "

1821 tutors are online

Other Documents

07/03/2016

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors