What economic functions are fulfilled by futures?
What are the assumptions in the CAPM? Can these be relaxed without destroying the
conclusions of the model?
Leverage can magnify returns to the stockholders but also increase potential losses to
the stockholders.
Despite political, cultural and economic differences, foreign markets are driven by the
same factors that drive U.S. markets.
Explain how dividend yield on the S&P 500 Index can be used to make market
forecasts.
Briefly explain the fees charged by funds.
Distinguish between systematic and nonsystematic risk. What are two other names for
each? Give examples of each.