When answering a question copy and paste the question first and then answer it, in other words dont say Q#3, but write the whole question and then answer it.

This discussion board remains active from 9/9 till 9/18

Each Student should answer questions 15 and 16 and one of the questions from 1-14. If some of the answers by other students are not satisfactory to you, please complete the answer by following threaded discussion. Each student first needs to answer a question that has not been answered yet.

First answer those questions that have not been answered by other students.

1. Explain the difference between cash account and margin account
2. What is passive portfolio management?
3. What is active portfolio management?
4. Explain the Top-down approach to portfolio construction.
5. Explain the Bottom-up approach to portfolio construction.
6. What is HYPOTHECATION?
7. What is a short sale? Choose a publicly traded stock and find its short interest ratio from yahoo.com.
8. Discuss various types of retirement account accounts.
9. Do you think investment decision depends on the investors age?
10. What is a tax shelter, does a tax shelter imply that the individual avoids paying taxes?
11. What is an IRA? A Roth IRA?
12. What is a Keogh Plan? IS it advantageous for investors to open Keogh plans?
13. What is the difference between regular IRA and Roth IRA?
14. What is Efficient Market Hypothesis?
15. Choose a stock from NYSE or NASDAQ. Assume you have shorted 1000 shares of that stock six month ago. Assume you cover your short during this coming week when you post (Your Holding period = 6 months). Estimate your profits and loss. Dont choose a stock that has already been chosen by another student. (You need to find out from yahoo.com/finance your stocks price six month ago)

1. Choose another publicly traded company. Assume you had bought 1000 share of that stock on the close of the market six months ago. Assume at the time of purchase you borrowed 50 percent of total investment from your broker (buying on margin). Assume you sell your 1000 shares during this coming week (Your Holding period = 6 months. Assuming your broker call money rate is 8% per year, what is your holding period return in percent? What is your annualized return in percent? (Hint: you need to find out from yahoo.com your stocks price six month prior to the day you sell your stock). For your selling price use Yahoo.com/Finance quote.