1) Each answer should be atleast 4-5 lines long. Should have examples cited to support your understanding (examples from either actual companies, situations, or assumptions (on how you would perform for a product launch etc))
1) Explain how are stock returns determined?
2) Explain how are bond prices determined?
3) What is an annuity, what are two types and how do their values differ?
4) How can investors reduce risk?
5) Why do funds generated through retained earnings have a cost?
6) How do firms make decisions about whether to invest in costly, long-lived real assets?
7) How does a firm�s capital structure affect its risk?
8) How is the cost of short-term credit determined? Why is it necessary to compute the cost of credit?
9) What is the difference between the arithmetic average return and the geometric average return?
10) What general rules do professionals advise individuals to follow when investing their money?