CPCU 556 Homework-Week 3

Basic Investment Objective Definition:

Factors in Choice of Investment (10)

Financial Risk

Market Risk

Interest Rate Risk (3)

Rates of Return (include the 4 equations)

Capital Gains Advantages (5)

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CPCU 556 Homework-Week 3

Capital Gain Limitations (3)

Average Annual Compound rate of total return

After Tax Total Return

3 methods of diversification

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CPCU 556 Homework-Week 3

5 Measures of value for common stocks

Dollar Cost Averaging

Margin Accounts

Selling Short

Defensive Stocks

Name 4 theories of common stock investment

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CPCU 556 Homework-Week 3

Degree of Risk

Bear Market

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CPCU 556 Homework-Week 3

Operating Rate of Return

Disadvantages of real estate as an investment (4)

Advantages of real estate as an investment (6)

Real Estate Investment Trusts )REITs)

Real Estate Classifications (4)

Like-Kind Exchanges (AKA Section 1031)

Passive Activity

5 Donna M. Kesot, CPCU Copyright 2012© 4-1-2012

CPCU 556 Homework-Week 3

IPOs

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