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

2. CPCU 556 Homework-Week 3
Capital Gain Limitations (3)
Average Annual Compound rate of total return
After Tax Total Return
3 methods of diversification
2 Donna M. Kesot, CPCU
Copyright 2012© 4-1-2012

3. 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
3 Donna M. Kesot, CPCU
Copyright 2012© 4-1-2012

4. CPCU 556 Homework-Week 3
Degree of Risk
Bear Market
4 Donna M. Kesot, CPCU
Copyright 2012© 4-1-2012

5. 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

6. CPCU 556 Homework-Week 3
IPOs
6 Donna M. Kesot, CPCU
Copyright 2012© 4-1-2012