RESPOND THE FOLLOWING:
Research for academic studies, Business Finance Magazine, CFO Magazine, Strategic Finance Magazine, McKenzie Quarterly, and other financial management trade journals to respond to the following questions.
Required:
1. What determines stock market valuations?
2. Is a stock’s price primarily determined by the discounted sum of future cash flows, monetary policy, or fear and greed?
3. Is market timing possible using sentiment indicators such as put/call ratios and Investor’s Intelligence surveys?
4. As a financial manager, to what extent would market timing be an effective strategy for high-income investors? Retirees? Explain your responses.
