1. What does modern portfolio theory (i.e., traditional finance) say about how an investor should form an optimal stock portfolio? b. What does the efficient frontier mean for an investor who is considering a number of investment choices?
2. What methods can be used by the FED to influence interest rates? Are these methods effective? Use examples where appropriate.
3. Determine the periodic payments on the given mortgage. $1,000,000, 26-year, 5.1% mortgage with monthly payments.