Econ 301 and Finc 340 Week 4 (Tom B)

ECON 301 TOPIC 1

Visit:

www. imf.org

www.worldbank.org

www.wto.org

1) Write a paragraph on each organization in terms of their objectives and accomplishments (Each paragraph should not be less than 100 words).

2) Do you support these organizations? Take a position and defend it. (between 150 and 200 words).

ECON 301 TOPIC 2

Open the following links: [If you are unable to open it, type the link in search engine. If it does not work, please let me know].

http://online.wsj.com/article/SB124513772364618177.html

http://online.wsj.com/article/SB10001424052702303816504577310810564823698.html

http://online.wsj.com/articles/brics-countries-meet-to-create-new-development-bank-1405126341

1) Summarize the three articles (between 250-300 words)

2) Do you agree or disagree with the message in the articles? Take a position and defend it . (between 150-200 words).

FINC 340 DISCUSSION

Week 4 Discussion  (From Assigned Week 4 Reading)

Let me introduce you folks to the main idea behind the assigned reading: the topics of stock valuation and security analysis are further considered . Also addressed are some major changes taking place in the market, as they affect the valuation process.The accuracy of stock market prices is considered. Information is divided into three categories—price and volume, fundamental data, and information known only to insiders. Market efficiency is examined at each level, along with some pieces of information that seem to provide returns in excess of what would be expected solely on the basis of risk. Emotions and other subjective factors play a role in investment decisions. Hence, the reading includes information on the new area of behavioral finance so that, folks, you can appreciate the ongoing debate between behaviorists and supporters of the efficient market hypothesis.

  In the light of this information, Let’s Discuss: 

1-What is your opinion on the role  that a company’s future prospects play in the stock valuation process?  What is the framework for developing such forecasts?  Please provide an example of the company. 

2- Some students believe that the financial markets are driven by fear and greed, do you?  Define "fear" and "greed" and how to determine these characteristics when you see them?  Or, do you think that most investors are attempting to make reasonably rational choices about the best investments to acquire that can produce attractive returns?

3- Are security markets efficient?  In formulating your response, provide evidence that demonstrates that markets are efficient and offer specific evidence that suggests that markets are not efficient?

4-How would you elaborate on  weak, semi-strong, and strong versions of the efficient market hypothesis and market anomalies? Substantiate with an example. 

5-What is Technical analysis? Explain its role in the security analysis and stock selection process?  What are the various measures of market performance that make up technical analysis?

5-Do you think that Behavioral finance is a challenge to market efficiency and how do psychological factors can affect investors’ decisions?  What are your views about how the experiences of the recent financial crisis influence the theories and observations about market efficiency?

6- Most Important Things Learned - What are the most important things you learned from the study of this week's readings and assignments?