Divide a person's life from age 20 to 60 into ten-year segments and discuss the likely saving of borrowing patterns during each period. Would you expect the saving-borrowing pattern to differ by occupation? for example medical doctor versus a plumber.

Briefly discuss the five fundamental factors that influence the risk premium of an investment.

Give an example of aa liquid investment and an illiquid investment. Discuss why you consider each of them to be liquid or illiquid.

You own 100 shares of CALBANK stock, and you want to sell it because you need the money to make down payment on a car. Assume there is absolutely no secondary market system in common stocks. How would you go about selling the stock? Discuss.

Briefly define each of the following terms and give an example.

a. Market order

b. Limit order

c. Short Sale

d. Short loss order

You have GHS 40,000 to invest in Topman Shoes, a stock is selling for GHS 80 a share. The initial margin requirement is 60%. Ignoring taxes and commissions, show in detail the impact on your rate of return if the stock rises to GHS 100 a share and if it declines to GHS 40 a share assuming: (a) you pay cash for the stock and (b) you buy it using maximum leverage.

Stock K, L and M each has the esame expected return and standard deviation. The correlation coefficients between each pair of this stocks are:

K and L correlation coefficient= +0.8

K and M correlation coefficient =+0.2

L and M correlation coefficient =-0.4

Given these correlations, a portfolio constructed of which pair of stock will have the lowest standard deviation? Explain.

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Accounting Questions and Answers 1 Saving and Borrowing Patterns by Age and Occupation Age Segment Years Likely SavingBorrowing Pattern Occupation Differences 2030 Low savings high borrowing for educa... View the full answer