Question 5: Critically explain the variables used in the Black-Scholes model, its assumptions and the reasons for its popularity. (30 marks)
Question 6: Critically discuss the Discounted Dividend Model (DDM) and the Gordon Growth Model and their limitations. (30 marks)
a) Critically discuss the yield curve, and explain how it can be used by investors to forecast economic recessions. (20 marks)
b) Explain how and when bond convexity should be used to improve the approximation of Duration to estimate bond price changes due to changes in interest rates. (10 marks)
(Total: 30 marks)
The post International Investments appeared first on nursing writers.
The post International Investments first appeared on nursing writers.