Question 1
Please use APA style?. The learning objectives of this case are: 1. To provide a better understanding of the role of an investment advisor. 2. To present a framework for how a portfolio manager attempts to ourperform, through investment select and market timing 3. To examine the benefits of diversification 4. To examine the development of an invetment policy statement 5. To provide aan understanding of the global financial crisis of 2007-2009 6. To introduce the notion of behavioural finane and how emotions and psychological factors affect investment decisions. The written case presentation will be graded on the extent to which it addressess the following: (questions) 1. What is the role of an investment advisor, and how does an advisor such as Rudy Wong attempt to add value? 2. What are the pro's and Con's of quetionnaires and profiling (see ase Ehibits 5 and 6 in terms of assisting in the development of an investment plan? what should you include in an invetment policy statement? 3. What etent do emotions and psychological factors affect investment decisions, and how should Wong account for this, given the state of the financial markets as of March 2009. 4, What investment strategies sna advise should Wong provide to each of his four clients? How should he communicate with each client?
Question 2
Assignment # 1 ? Return on Financial Assets You are to solve the following problems: 1.Consider the following four debt securities, which are identical in every characteristic except as noted: ?W: A corporate bond rated AAA ?X: A corporate bond rate BBB ?Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X ?Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work. 2.Explain how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter. 3.One year ago, you bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return. Show your work. 4.Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock?s current yield, capital-gains yield, and the return. Show your work for three separate calculations. 5.Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations. The format of the assignment is to be as follows: ?Typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. ?Type the question followed by your solution. ?A title page is to be included. The title page is to contain the title of the assignment, your name, the instructor?s name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.,Hello, need your help...this is my mid-term exam....ty...for friday pls,Ty Rachel...Love ur work...:0),Good morning Rachel....It's possible to receive my assigment asap....my date line is today....ty and have a gr8t day...ty...;0)
Question 3
Hanson, Inc. is a medium-sized business which sells auto parts to auto repair shops in Northeast Ohio. Based upon a discussion with the cash receipts clerk, Anna, you have prepared the following summary of Hanson?s cash receipts system. Use this narrative to prepare a document flowchart to depict Hanson?s cash receipts process. Hanson, Inc. receives customer payments in the form of cash and checks received at the time of sale for in-stock parts sold to walk-in customers and customer receipts sent in the mail for parts that are ordered or for customers who purchase from Hanson on account. All receipts and remittance slips are initially forwarded to the treasurer. At the end of each day the treasurer endorses all checks by stamping them ?for deposit only? and prepares a deposit slip for the cash and checks. The treasurer also prepares a cash receipts summary report which is forwarded to the controller department. The cash receipts clerk then deposits the cash, checks, and the deposit slip at a local bank at the end of each day. When checks are received for a customer?s payment on account, a remittance slip is sent in with the payment. These remittance slips are forwarded to the accounts receivable department and are used to update the customer?s balance in the accounts receivable subsidiary ledger which then is used to update the general ledger at the end of each day. The remittance slips are stored in a filing cabinet and are filed alphabetically by customer. On a weekly basis the accounts receivable department generates an accounts receivable aging analysis using the data provided in the accounts receivable subsidiary ledger. The accounts receivable aging analysis is sent to the credit and collections department. --> Prepare the flowchart in Word (preferably), or Excel. Subject: Information Accounting Systems
Question 4
"I have only asked one question today... Hi there, I was told by Ashley Rockefeller that I can pose all 3 question at any time within the day. I dont understand why my question is being denied... Can you explain?? "(15 marks) You manage a portfolio that is currently all invested in equities in companies in five major Canadian industries. The market value involved and beta for each industry are shown in the table below. Industry MV Beta Oil and Gas $1,000,000 1.2 Technology 600,000 1.5 Utilities 1,500,000 0.8 Financial 800,000 1.3 Pharmaceutical 1,300,000 1.1 You believe that the Canadian equity market is on the verge of a big but short-lived downturn. You would move your portfolio temporarily into T-bills, but you do not want to incur the transaction costs of liquidating and reestablishing your equity position. Instead, you decide to hedge your portfolio with three-month S&P/TSX 60 index futures contracts for one month. Currently, the level of the S&P/TSX 60 index is 678.68, the three-month futures price of the S&P/TSX 60 is 665.60, and one contract is for $200 times the index. The annual simple risk-free rate of return is 1%. a. How many futures contracts should you use? Long or short? (5 marks)
Question 5
1. Kold Services Corporation estimates that its 2013 taxable income will be $500,000. Thus, it is subject to a flat 34% income tax rate and incurs a $170,000 liability. For each of the following independent cases, compute Kold's minimum quarterly estimated tax payments that will avoid an underpayment penalty. Either input your answers in the "text box" or attach an excel spreadsheet but SHOW YOUR WORK. a. For 2012, taxable income was a loss of $300,000. Kold carried back all of this loss to prior years and exhausted the entire net operating loss in creating a zero 2012 liability. b. For 2012, taxable income was $450,000, and tax liability was $153,000. c. For 2011, taxable income was $2 million, and tax liability was $680,000. For 2012, taxable income was $450,000, and tax liability was $153,000. 2. Compute the overvaluation penalty for each of the following independent cases involving the fair market value of charitable contribution property. In each case, assume a marginal tax rate of 35%. You may either put your answers in the "textbox" for the question or attached an excel spreadsheet. Whichever you prefer. BUT SHOW YOUR WORK. Taxpayer -- Corrected IRS Value -- Reported Valuation a. Individual -- $40,000 -- $50,000. b. C-corporation -- 30,000 -- 50,000. c. S-corporation -- 40,000 -- 50,000. d. Individual -- 150,000 -- 200,000. e. Individual -- 150,000 -- 250,000. f. C-corporation -- 150,000 -- 750,000.
