Securities Market
Strayer University
Mehmet F. Celik
7015791091
Basic Measures, Policy Statements, and Securities Markets -2
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1.
a.
b.
c.
d.
2.
Objective
Mr. Lewis 60 years old and in the near time he lost his wife since she had a disease that killed
her. But, he believes that a cure can be found for that disease, therefore he has decided that a
Basic Measures, Policy Statements, and Securities Markets -3
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medical research foundation will receive half the proceeds now and will be the primary
beneficiary of his estate upon his death. He has no children and is in excellent health, he is
Constraints
Liquidity needs:
I always defend one thesis that people who are pretty much end of the middle age like Mr.
Lewis is, should be interested in less the long term investment than their short term plans.
Because, they do not have enough time and energy for recover from their own financial
mistakes. Therefore, Mr. Lewis should keep more cash or similar liquid such as treasure
Time Horizon:
As I said above, regardless of what kind investments currently he has, he needs more liquidity
with short term investments, since he can not tolerate high risk instead of moderate or less
portfolio risk. However, he has to keep at least the same value of wealth against the inflation
that he should be interested in long term investment such as Large Cap Stock that it protects
Tax Concerns:
He is in a high tax bracket prior to retiring and, so he will seek tax-exempt income and tax-
which will become less. He must be aware of perception of large capital gains during
He should set up trust account if he has not done it yet. He should seek a financial advisor
who will show him the way for financial plans to obey laws and regulations and to implement
plans properly.
Investors may determine the way basis of personal preferences or social consciousness
reasons. Mr. Lewis has committed his investments to a foundation for the disease that killed
his wife.
3.
HPR = Ending Value / Beginning Value
HPY = HPR – 1
A.M. = (-0.11) + 0.33 / 2 = 0.11 = 11 % that means we can make profits by the limit buy
order
A.M. = 0.05 + 0.58 / 2 = 0.315 = 31.5% this is the best choice to make the most profit.
4.
DAYS /
Company IBM JNJ CAT MCD HD AVERAGE
11 October 4.004.300,00 6.172.100,00 4.593.700,00 3.653.400,00 8.358.700,00 5.356.440,00
12 October 5.637.300,00 8.707.400,00 10.034.200,00 4.703.500,00 12.539.000,00 8.324.280,00
13 October 8.784.300,00 10.074.900,00 8.493.200,00 4.370.700,00 15.247.200,00 9.394.060,00
14 October 5.653.100,00 8.632.700,00 5.663.900,00 6.616.400,00 11.242.500,00 7.561.720,00
15 October 7.220.400,00 13.241.800,00 6.522.900,00 6.259.200,00 12.945.300,00 9.237.920,00
AVERAGE 6.259.880,00 9.365.780,00 7.061.580,00 5.120.640,00 12.066.540,00 39.874.420,00
DAYS /
Company AAPL DELL GOOG CSCO MSFT AVERAGE
11 October 15.245.400,00 16.233.300,00 2.626.300,00 28.424.200,00 27.552.800,00 18.016.400,00
Basic Measures, Policy Statements, and Securities Markets -6
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12 October 19.897.900,00 42.974.700,00 3.753.600,00 35.062.400,00 50.060.300,00 30.349.780,00
13 October 22.215.400,00 25.942.700,00 3.055.600,00 66.076.700,00 75.116.704,00 38.481.420,80
14 October 15.491.800,00 29.440.100,00 6.596.400,00 38.815.500,00 51.949.100,00 28.458.580,00
15 October 32.804.800,00 28.156.200,00 14.813.100,00 50.218.500,00 68.920.200,00 38.982.560,00
AVERAGE 21.131.060,00 28.549.400,00 6.169.000,00 43.719.460,00 54.719.820,80 154.288.740,80
a. First sample that you have given us is 39.874.420, 00 while other sample that we
b. Of course, I would expect this difference to have an impact on the efficiency of the
markets for two samples. If we explain this issue briefly and clearly; we should point out
analysis to measure the worth of market move. This explanation makes NASDAQ has a
little more volume than others, because NASDAQ provides easy access to investors,
especially dealers who create liquid markets by purchasing and selling against personal