Categories in philosophy often seem too rigid or too simpleminded to classify the complexity of our views, but perhaps the following checklist will help you understand your own position in….
Comment on the following statement: Possessing a callable bond is always a positive information because you enjoy capital gains from the bond retirement at par.
Answer ALL Questions
- What role commissions undertake in the market efficiency test ? (4 marks)
- In a Maybank research report entitled “Capitalising Value and Growth Investment”, the report says that “excess returns from value equities is likely to follow a time period of below par performance, rendering early identification and purchase of value equities ineffective strategically.” Explain why early buying of value equities is ineffective strategically. (6 marks)
- Comment on the following statement: In valuing a bond, it makes no difference in terms of the age of the security. All that matters is the length of the expiry period. (2 marks)
- Comment on the following statement: Possessing a callable bond is always a positive information because you enjoy capital gains from the bond retirement at par. (8 marks)
Although stop orders are very useful, surveys show that very few individual investors use them. Why does this happen ? (2 marks