FIN 3717 Chapter : Bill Miller

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azuremammoth471

15 Mar 2019

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Bill miller manages value trust, a mutual fund that has been extremely successful. This makes a lot of people skeptical of the efficient market hypothesis which says that a stock outperformed its benchmark the standard and poor"s 500 for 14 years. It has earned a cumulative return of more than 830% over those 14 years. Bill miller has a rather different approach to making his investments. He goes against the conventional ways of thinking. Some might say that that is not the case that stock prices are actually guided by emotions of the investors. Bill miller takes into account human emotions when doing his investments. He recognizes that when a stock price goes down by a lot, and it"s a high value stock it is probably an overreaction and he knows that the price of that stock will go back up again. This gives him a chance to make a profit over a short time.

Related Questions

Question 18

1. Which of the following does an efficient portfolio do?

1. Maximizes risk for a given return.

2. Minimizes risk for a given return.

3. Maximizes return for a given level of risk.

4. Minimizes return for a given level of risk.

	a.	1 and 3.
	b.	1 and 4.
	c.	2 and 3.
	d.	2 and 4.

3 points

Question 19

1. The security market line does not:

	a.	Indicate the relationship between risk and return.
	b.	Relate the market return and beta to a stock's return.
	c.	Identify the optimal portfolio for the investor.
	d.	Use beta coefficients as a measure of risk.

3 points

Question 20

1. Mutual funds ____ realized capital gains and income (for example, dividends received):

	a.	Retain.
	b.	Reinvest.
	c.	Distribute.
	d.	Distribute or reinvest.

2 points

Question 21

1. An index fund limits its portfolio to:

	a.	High quality securities.
	b.	Stocks that respond to changes in the consumer price index.
	c.	Stocks included in an aggregate measure of stock prices.
	d.	Stocks of firms in a particular industry.

2 points

Question 22

1. Mutual funds with beta coefficients greater than 1.0:

	a.	Have outperformed the market.
	b.	Have underperformed the market.
	c.	Have more systematic risk than the market.
	d.	Have less systematic risk than the market.

3 points

Question 23

1. Which of the following will tend to cause a stock's price to fall?

1. The firms beta declines.

2. The firms beta increases.

3. The risk-free rate declines.

4. The risk-free rate increases.

	a.	1 and 3.
	b.	1 and 4.
	c.	2 and 3.
	d.	2 and 4.

2 points

Question 24

1. The use of P/E ratios to select stocks suggests that:

	a.	High P/E stocks should be purchased.
	b.	Low P/E ratio stocks are overvalued.
	c.	A stock should be purchased if it is selling near its historic low P/E.
	d.	A stock should be purchased if it is selling near its historic high P/E.

2 points

Question 25

1. What does the efficient market hypothesis require?

1. Financial markets to be competitive.

2. Prices to adjust rapidly.

3. Prices of undervalued securities to fall.

	a.	1 and 2.
	b.	1 and 3.
	c.	2 and 3.
	d.	All of these choices.

3 points

Question 26

1. Which of the following does the strong form of the efficient market hypothesis suggest?

1. Inside information will not lead to superior investment results.

2. Inside information will lead to superior investment results.

3. Studying financial statements will not lead to superior investment results.

4. Studying financial statements will lead to superior investment results.

	a.	1 and 3.
	b.	1 and 4.
	c.	2 and 3.
	d.	2 and 4.

3 points

Question 27

1. Which of the following is the least broad-based measure of stock prices?

	a.	NASDAQ market index.
	b.	Dow Jones industrial average.
	c.	S&P 500 stock index.
	d.	AMEX market value index.

3 points

Question 28

1. What is dollar-cost averaging?

	a.	Periodically buying a round lot of stock.
	b.	Periodically investing a specified dollar amount in a stock.
	c.	A means to increase the average cost basis.
	d.	A means to ensure a positive return.

2 points

Question 29

1. Stock dividends cause:

	a.	The price of a share of stock to rise.
	b.	The price of a share of stock to fall.
	c.	The value of the firm to rise.
	d.	The value of the firm to fall.

2 points

Question 30

1. Which of the following occurs when a stock has a two-for-one split?

	a.	The price of the stock doubles.
	b.	The firm's assets increase.
	c.	The firm's liabilities decrease.
	d.	The par value of the stock is reduced.

3 points

Question 31

1. Dividend reinvestment plans offer which of the following advantages?

1. Deferment of federal income taxes.

2. A convenient means to accumulate shares.

3. Dollar-cost averaging.

	a.	1 and 2.
	b.	1 and 3.
	c.	2 and 3.
	d.	2.

3 points

Question 32

1. When the Federal Reserve seeks to expand the money supply, it:

	a.	Sells securities.
	b.	Buy securities.
	c.	Runs a deficit.
	d.	Runs a surplus.

2 points

Question 33

1. The sum of cash, currency, and demand deposits is:

	a.	M1.
	b.	M2.
	c.	M3.
	d.	M4.

3 points

Question 34

1. If the Federal Reserve lowers the target federal funds rate:

	a.	The discount rate rises.
	b.	Liquidity in the banking system is increased.
	c.	Security prices fall.
	d.	Required reserves are also decreased.

3 points

Question 35

1. The anticipation of inflation suggests that the investor should:

	a.	Buy bonds.
	b.	Anticipate higher interest rates.
	c.	Avoid real estate investments.
	d.	Sell stocks of gold companies.

3 points

Question 36

1. The current ratio is unaffected by:

	a.	Using cash to pay a dividend.
	b.	The collection of an account receivable.
	c.	Selling inventory for a profit.
	d.	Selling bonds and using the funds to finance inventory.

2 points

Question 37

1. Which of the following are true as the debt ratio increases?

1. Fewer assets are debt financed.

2. More assets are debt financed.

3. The ratio of debt equity increases.

4. The ratio of debt equity decreases.

	a.	1 and 3.
	b.	1 and 4.
	c.	2 and 3.
	d.	2 and 4.

2 points

Question 38

1. The technical approach suggests that future stock prices are forecasted by:

	a.	Past stock rates.
	b.	Financial ratios.
	c.	Accounting statements.
	d.	Monetary policy.

2 points

Question 39

1. The Dogs of the Dow strategy:

	a.	Forecasts the direction of the Dow Jones averages.
	b.	Suggests buying the Dow stocks with the highest dividend yields.
	c.	Outperforms the S&P 500.
	d.	Suggests buying the lowest-priced Dow stocks.

3 points

Question 40

1. Behavioral finance combines aspects from which two fields in an attempt to identify human traits that affect investment decisions?

	a.	Accounting and finance.
	b.	Finance and psychology.
	c.	Physics and finance.
	d.	Finance and marketing.

ultramarineguinea-pig196

Q1. Members are most likely to experience role conflict and divided loyalties in:
a. a cross-functional project team
b. a self-managed operational team
c. a traditional work team
d. an executive team

Q2. Which of the following was not mentioned as a primary determinant of performance for a functional team?
a. how long the current leader has been in that position
b. trust and cooperation among the team members
c. the organization and coordination of activities
d. member agreement about objectives and strategies

Q3. Which is not likely to improve the effectiveness of a self-managed team?
a. let members share in financial gains from improved performance
b. change the membership frequently to give the team fresh ideas
c. provide accurate, timely information relevant to team activities
d. give members training in interpersonal and problem solving skills

Q4. Which process is most likely to occur in an after-activity review?
a. determination of responsibility for errors and mistakes
b. recognition of members for their contributions to the team
c. analysis of what was done well and what needs to be changed
d. selection of the most qualified team leader for the next activity

Q5. Which type of activity is least likely to be delegated to a self-managed team?
a. evaluating each team member's task performance
b. firing a team member who has unsatisfactory performance
c. determining the work procedures to be used by the team
d. determining which team member will carry out each task

Q6. The primary responsibility of the leader of a decision group is to:
a. suggest good ideas for solving the problem
b. ensure that everybody has equal influence
c. encourage group members to reach an agreement quickly
d. structure the discussion in a systematic manner

Q7. The primary purpose of a dialogue session is to:
a. debate competing proposals and identify the best one for the team
b. help members learn more about each other's interests and aspirations
c. encourage members to express their dissatisfaction with each other openly
d. increase understanding of implicit assumptions and mental models

Q8. What was found in research on the effectiveness of self-managed teams?
a. productivity and quality improved substantially
b. organizational commitment usually increased
c. turnover and absenteeism were lower
d. the results were inconsistent across studies

Q9. Which condition is least important for the success of a new strategy?
a. it is based on the core competencies of the organization
b. it is compatible with significant changes in the external environment
c. it has a few clear themes relevant to the shared values of the members
d. it is similar to a strategy that was previously successful

Q10. Which of the following actions by the CEO is not likely to improve the effectiveness of an executive team?
a. clearly define objectives consistent with shared values of team members
b. talk with individuals whenever possible to reduce time in meetings
c. give the team considerable discretion but specify limits of team authority
d. rely more on advice from members with the most expertise

Q11. Which statement about institutionalization in organizations is most accurate?
a. it describes how subunits with expertise gain power in organizations
b. it makes it easier for organizations to adapt to a changing environment
c. it describes how people use power to gain more power
d. it demonstrates why political tactics are unnecessary to maintain power

Q12. What is the best summary of findings in research on leadership succession?
a. chief executives have little influence on organization performance due to the overwhelming influence of economic and market conditions
b. chief executives have a strong impact on organization performance and are the primary determinant of whether the organization prospers or declines
c. chief executives have a moderate impact on organizational performance when measured over a period of several years
d. chief executives influence stock prices but have little or no influence on the firm's actual economic performance

Q13. What pattern of behavior is least likely during the first few months on the job for the new CEO in an organization that is prosperous?
a. the CEO will quickly select a new strategy and make major changes in the organization to look like a confident and dynamic leader
b. the CEO will make changes in the functional areas in which he or she has the most prior experience
c. the CEO will attempt to demonstrate some small successes in dealing with immediate problems to build a favorable image and gain more discretion
d. the CEO will gather and analyze information about the organization and environment in order to determine an appropriate strategy

Q14. Which of the following was not given as a guideline for external monitoring?
a. examine a wide range of developments and trends in the environment
b. make an extra effort to learn what clients and customers want and need
c. identify both the strengths and weaknesses of competing products
d. rely primarily on your own intuition to analyze the environment

Q15. In what situation are executive teams least likely to be useful?
a. the organization includes several business units with diverse products
b. there is intense competition among executives to become the next CEO
c. the organization has a complex and turbulent environment
d. the executives in the team have very diverse backgrounds and perspectives

Q16. Which is not a core performance determinant in the flexible leadership theory?
a. process reliability and efficiency
b. leader experience and technical skills
c. human resources and relations
d. innovation and adaptation

Q17. Research at CCL indicates that the least amount of learning occurred for managers who had:
a. assignments for which they were well prepared
b. challenges they had to face alone
c. opportunities to make mistakes
d. diverse experiences with different types of challenges

Q18. Which statement about leadership development in organizations is least likely to be accurate:
a. leadership development should be consistent with organization strategy
b. developmental activities should be coordinated with formal training
c. self development activities should be maximized to reduce costs
d. leadership development should be integrated with succession planning

Q19. Which of the following usually includes a mix of formal training and learning from experience working on management projects?
a. mentoring
b. job rotation programs
c. action learning
d. behavior modeling

Q20. Which developmental method is most useful for helping managers to understand their inner feelings and values?
a. outdoor challenge programs
b. personal growth programs
c. mentoring programs
d. multisource feedback workshops

Q21. Which approach is used most often for improving leadership?
a. multi-source feedback workshops
b. formal mentoring programs
c. job rotation programs
d. formal training programs

Q22. What two methods are most useful for improving conceptual skills?
a. case analysis and behavior role modeling
b. feedback workshops and simulations
c. simulations and case analysis
d. behavior role modeling and feedback workshops

Q23. In most feedback workshops for management development, the primary source of information about a manager's behavior is:
a. other managers in the workshop who fill out a checklist
b. observers who record the person's behavior during a simulation
c. observation of a videotape taken of the manager doing regular work
d. questionnaires filled out by people with whom the manager works

Q24. Training programs to enhance leadership skills:
a. are widely used for managers in organizations
b. are seldom used for effective managers
c. are used mostly for department supervisors
d. are used mostly for top executives in large organizations

Q25. Which is least likely to be a reason for the "glass ceiling" in large organizations?
a. differences in leadership behavior displayed by men and women
b. implicit theories about the attributes required for effective leadership
c. popular stereotypes about the skills and traits of men and women
d. less encouragement and developmental opportunities for women

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FIN 3717 Chapter : Bill Miller

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