BUS 405 Week 1 DQ1 Blumes Formula Allocation and Selection

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This paperwork of BUS 405 Week 1 Discussion Question 1 Blumes Formula, Allocation, and Selection includes:  

From Chapter 1, answer Concept Question 5: What is Blume 

Business - General Business  

Week One  

Week 1 â€" DQ1 - Blume’s Formula, Allocation, and Selection  

  

From Chapter 1, answer Concept Question 5: What is Blume’s 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 and support your answers with examples from the text and other resources.  

Week 1 â€" DQ2 - 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.  

Assignment

Week 1- Assignment - Annualized Returns â€" Chapter 3 problem 18Â

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. You’re 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. What is your annualized return from these two investments if, in six months, MMEE is selling for $48 per share? What about $36 per share?  

Week Two  

Readings  

 Chapter 5: The Stock Market  

 Chapter 6: Common Stock Valuation  

 Chapter 7: Stock Price Behavior and Market Efficiency  

 Chapter 8: Behavioral Finance and the Psychology of Investing  

Discussions  

Week 2 â€" DQ1 - 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 question and support your answers with examples from the text and other resources.