投資分析與組合管理書后習(xí)題答案

1、1 - 1 CHAPTER 1 THE INVESTMENT SETTING Answers to Questions 1. When an individual’s current money income exceeds his current consumption desires, he saves the excess. Rather than keep these savings in his possession, t

2、he individual may consider it worthwhile to forego immediate possession of the money for a larger future amount of consumption. This trade-off of present consumption for a higher level of future consumption is the esse

3、nce of investment. An investment is the current commitment of funds for a period of time in order to derive a future flow of funds that will compensate the investor for the time value of money, the expected rate of in

4、flation over the life of the investment, and provide a premium for the uncertainty associated with this future flow of funds. 2. Students in general tend to be borrowers because they are typically not employed so have

5、no income, but obviously consume and have expenses. The usual intent is to invest the money borrowed in order to increase their future income stream from employment - i.e., students expect to receive a better job and

6、higher income due to their investment in education. 3. In the 20-30 year segment an individual would tend to be a net borrower since he is in a relatively low-income bracket and has several expenditures - automobile, d

7、urable goods, etc. In the 30-40 segment again the individual would likely dissave, or borrow, since his expenditures would increase with the advent of family life, and conceivably, the purchase of a house. In the 40-5

8、0 segment, the individual would probably be a saver since income would have increased substantially with no increase in expenditures. Between the ages of 50 and 60 the individual would typically be a strong saver sinc

9、e income would continue to increase and by now the couple would be “empty-nesters.” After this, depending upon when the individual retires, the individual would probably be a dissaver as income decreases (transition f

10、rom regular income to income from a pension). 4. The saving-borrowing pattern would vary by profession to the extent that compensation patterns vary by profession. For most white-collar professions (e.g., lawyers) inc

11、ome would tend to increase with age. Thus, lawyers would tend to be borrowers in the early segments (when income is low) and savers later in life. Alternatively, blue-collar professions (e.g., plumbers), where skill is

12、 often physical, compensation tends to remain constant or decline with age. Thus, plumbers would tend to be savers in the early segments and dissavers later (when their income declines). 5. The difference is because o

13、f the definition and measurement of return. In the case of the WSJ, they are only referring to the current dividend yield on common stocks versus the promised yield on bonds. In the University of Chicago studies, they

14、are talking about the total rate of return on common stocks, which is the dividend yield plus the capital gain or loss yield during the period. In the long run, the dividend yield has been 4-5 percent and the capital g

15、ain yield has averaged about the same. Therefore, it is important to compare alternative investments based upon total return. 1 - 3 10. The increased use of debt increases the fixed interest payment. Since this fixed

16、contractual payment will increase, the residual earnings (net income) will become more variable. The required rate of return on the stock will change since the financial risk (as measured by the debt/equity ratio) has

17、 increased. 11. According to the Capital Asset Pricing Model, all securities are located on the Security Market Line with securities’ risk on the horizontal axis and securities’ expected return on its vertical axis. A

18、s to the locations of the five types of investments on the line, the U.S. government bonds should be located to the left of the other four, followed by United Kingdom government bonds, low-grade corporate bonds, common

19、 stock of large firms, and common stocks of Japanese firms. U.S. government bonds have the lowest risk and required rate of return simply because they virtually have no default risk at all. 12. If a market’s real

20、RFR is, say, 3 percent, the investor will require a 3 percent return on an investment since this will compensate him for deferring consumption. However, if the inflation rate is 4 percent, the investor would be worse o

21、ff in real terms if he invests at a rate of return of 4 percent - e.g., you would receive $103, but the cost of $100 worth of goods at the beginning of the year would be $104 at the end of the year, which means you cou

22、ld consume less real goods. Thus, for an investment to be desirable, it should have a return of 7.12 percent [(1.03 x 1.04) - 1], or an approximate return of 7 percent (3% + 4%). 13. Both changes cause an increase in

23、the required return on all investments. Specifically, an increase in the real growth rate will cause an increase in the economy’s RFR because of a higher level of investment opportunities. In addition, the increase in

24、the rate of inflation will result in an increase in the nominal RFR. Because both changes affect the nominal RFR, they will cause an equal increase in the required return on all investments of 5 percent. The graph shou

25、ld show a parallel shift upward in the capital market line of 5 percent. Expected ReturnRFRExpected RiskU.S. Government BondsU.K. Government BondsLow Grade Corporate BondsCommon Stock of Large FirmsCommon Stock of Japane