Discuss and write a summary on capital marketing.
May 14, 2021 Comments Off on Discuss and write a summary on capital marketing. Uncategorized Assignment-help

Discuss and write a summary on capital marketing.1.What is a reverse-repurchase agreement? How does the Federal Reserve use reverse-repo to inject liquidity into the financial system? 2.What is Regulation National Market System? How does brokers such as Robinhood provide zero commission service and still be profitable? 3.How does the “Equity Long/Short” strategy of hedge fund work? 4.In the Treasury Arbitrage case, James Franey commits $30 million to initiate the arbitrage trade. How much is the profit if convergence happens quickly? 5.In the Treasury Arbitrage case, why is it necessary to maintain a particular long/short ratio? Explain how is the long/short ratio x =1.13755 determined. 6.The S&P 500 index closed on Monday at 4,150. What is the futures price of the index contract for maturity in six months (Assuming annual interest rate of 1% and dividend yield of 2%)? 7.Please search and draw today’s yield curve, marking the rates for 3-month, 1-year, 5-year and 10-year Treasury yields. Explain what will happen to the slope of the yield curve if the economy rebounds stronger than expected in the second half of 2021. 8.Why could a negatively sloped yield curve predict economic recession? 9.As the economy begins to recover from the impact of the Pandemic, Fed Chair Powell repeatedly stated his intention not to raise interest rate while unemployment rate is still high. Please explain the Mr. Powell’s position using Taylor’s rule.