Gb550 unit 4 assignments and discussion
Research and define technical analysis and fundamental analysis. Provide examples of each type of analysis. Which style of analysis makes the most sense for the long-term investor?
Conceptually, how does an investor choose his, or her, optimal portfolio? What criteria should be used? Provide, and discuss, your example
There are two Assignments due in Unit 4.
Assignment 1 of 2:
25-1) Define the following terms, using graphs or equations to illustrate your answers wherever feasible:
a) Portfolio; feasible set; efficient portfolio; efficient frontier
b) Indifference curve; optimal portfolio
c) Capital Asset Pricing Model (CAPM); Capital Market Line (CML)
d) Characteristic line; beta coeffiecient, b
e) Arbitrage Pricing Theory (APT)
25-2) An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1=0.7 and bi2-0.9, what is Crisp’s required return?
Prepare this Assignment as a Word document. List each question, followed by your answer.
Directions for Submitting Assignment 1
Compose your Assignment in a MS Word document and save it as Username-GB550 Assignment 1-Unit#.doc (Example: TAllen- GB550 Assignment 1-Unit 4.doc). Submit your file by selecting the Unit 4: Assignment 1 Dropbox by the end of Unit 4.
Assignment 2 of 2:
Please complete all parts of spreadsheet problem 2-15 on page 89. It is recommended that you complete the problem using the Excel template located in Doc Sharing.
Directions for Submitting Assignment 2
Compose your Assignment in a MS Excel document and save it as Username-GB550 Assignment 2-Unit#.doc (Example: TAllen- GB550 Assignment 2-Unit 4.doc). Submit your file by selecting the