Finance with Dr. John Elder
LE#1
Before starting these exercises, be sure to work through the examples in the notes and from the chapter!
Chapt 2 #,8,9,15-19 (not to hand-in, but eligible for quiz).
Also, your PRS transmitter must be registered via blackboard and you must enter your student ID into your transmitter.
Answers
to some quantitative problems: 8. (a) return on index is 4.167%;
(b) new divisor is 2.34; (c) return is zero 9 (a) 3.85%; (b) 1.85%
Stock trading (OTIS): Explore links at OTIS and http://finance.yahoo.com and http://finance.google.com for information and quotes on stocks.
- Which company in the Dow Jones Industrial Average as the largest market capitalization?
- Which one has the smallest?
- Which one as the highest P/E ratio?
- Buy several
stocks for your account (at least 20). Do not list these stocks
in your journal. I will be able to monitor your stock trading
activity online.
To get this data, go to http://finance.yahoo.com
and click on the "Dow" Jones Industrial Average to get a close up of
that quote. Next, click on "components" to examine the components
of the index, then click on each company individually.
If finance.yahoo.com is not working, try http://cnnfn.com.
Click on the "Dow" Jones Industrial Average to get a close up of that
quote. Next, click on "Dow Components" to examine the components
of the index, then click on each company individually, then click on
"snapshot" for market capitalization data.
Your Stock Trading (OTIS) Journal
Keep this OTIS assignment (the typed
page), along with subsequent OTIS assignments in an electronic
"journal" (that is, keep the assignments together in a word processing
document such as MS Word). Your electronic journal will be a
sequence of OTIS related assignments. We will not collect each
OTIS assignment individually, but your complete journal will be
collected a few times this semester.
Use this document template for your OTIS journal entries.