Write a 3 pages paper on complete 15 short answer questions. explain each question clearly with more than 4 sentences. each question is not relative. the questions should be answered from the followin

Write a 3 pages paper on complete 15 short answer questions. explain each question clearly with more than 4 sentences. each question is not relative. the questions should be answered from the following documents i have uploaded. due 9:00am dec. 8. Lack of investors denotes a loss of the counties GDP. This is turn result in economic recession. Another cause is devaluation of one currency when other countries’ currencies become stronger. Means a country would not be able to attract enough investors to boost the economy.

With a downward treasury yield curve, denotes less confidence on the side of investors in the given economy. Such investors would rather buy treasury notes, to get a lower yield. A sloping curve implies that investors hold on bonds that go for a long term.

A U.S treasury bond refers to government’s borrowing to the people. U.S is a stable economy and hence the risk involved is low during investment, hence valuation is easy. One is able to know the likely returns through bond investment compared to stocks. Stocks are always changing based on fluctuating of the U.S dollar in relation to other currencies, hence has a higher risk of losses if one does not predict property. It is hence difficult to value stocks since they are always changing every minutes based on currencies change.

Dividend discount model works through valuation of stock price through using predicted dividends plus discounting them to present value. This is to give an idea of the value obtained in the model to be much higher compared to the shares currently trading, hence undervaluing th given stock.

Winners Curse theory refers to the tendency of an item to be purchase at a higher value than what is was purchased, through provision of incomplete information, or giving speculations of its value to rise. Bidders usually have a hard time getting the actual intrinsic value hence overestimate its price. The term has a good use in initial public offerings through making it underpriced as it comes to the primary market.