Module 4:  Equity Analysis and Valuation Question 4A (8 points) Explain the difference between intrinsic value and market price. Discuss why these two values may differ, how investors estimate intrinsic value, and why the relationship between intrinsic value and market price is central to investment decision-making. Question 4B (10 points) Equity valuation is often described as part science, part art, and part craft. Explain why valuation is inherently difficult and discuss the major assumptions and judgments that make valuation estimates uncertain. Question 4C (13.34 points) Professional analysts use a variety of valuation models rather than relying on a single approach. Compare the major absolute valuation models (Dividend Discount Model, Discounted Cash Flow/Free Cash Flow models, and Asset-Based models) with relative valuation models. Discuss the strengths, weaknesses, and appropriate applications of each approach, and explain why analysts frequently use multiple valuation models when estimating intrinsic value.

Module 7: Equity Derivatives and Portfolio Applications Question 7A  (10 points) Options are frequently described as insurance contracts for portfolio managers. Explain how protective put strategies are used to manage portfolio risk. Discuss the analogy between protective puts and insurance, including the roles of the option premium and the deductible. Explain the advantages and limitations of a protective put strategy. Question 7B (10 points) You have recently been promoted to senior portfolio manager of a large equity fund. A junior portfolio manager submits the following recommendation: “We expect the stock market to decline over the next three months. The best strategy is to sell every stock in the portfolio immediately and move the proceeds into Treasury bills. If the market recovers unexpectedly, we can simply buy the stocks back. There is no reason to use derivatives because they simply increase risk and are primarily speculative instruments.” As the senior portfolio manager, prepare a memorandum evaluating this recommendation. In your answer: Identify and explain at least six conceptual errors. Explain how derivatives can be used for risk management rather than speculation. Compare selling the portfolio with hedging the portfolio using stock index futures. Discuss the transaction-cost, implementation, and portfolio-management considerations involved in each approach. Question 7C (13.34 points) You have recently joined an asset management firm as a junior portfolio manager. During your first investment committee meeting, another junior manager makes the following statement: “I don’t understand why professional portfolio managers use stock index futures to hedge portfolios. Instead, they should simply buy put options. The maximum loss on the option is only the premium, they keep all of the upside if the market rises, and therefore options are always superior to futures for hedging. Since options require only a small premium, they are also much less expensive than futures.” As the senior portfolio manager, prepare a memorandum evaluating this recommendation. In your answer: Identify and explain at least six conceptual errors or misleading statements. Explain the different economic purposes of futures contracts and options. Discuss the situations in which futures are preferred and those in which options are preferred. Explain why portfolio managers frequently choose futures even though options provide asymmetric payoffs.

A 58-year-old woman presents with progressively worsening bilateral knee pain over the past 4 years. She reports morning stiffness lasting less than 30 minutes that improves with movement. She also notices crepitus when climbing stairs. Examination demonstrates decreased range of motion and mild bony enlargement without erythema. Which diagnosis is most likely?

A 41-year-old woman completes a PHQ-9. She scores positively on Question 9 regarding thoughts that she would be better off dead. What is the nurse practitioner’s next best action?

A 40-year-old woman with schizophrenia has been receiving olanzapine for one year. Which monitoring responsibility should routinely be performed in primary care?

A 51-year-old woman presents with nephrolithiasis. Laboratory testing reveals persistently acidic urine with a pH of 5.2. Which type of stone is most likely?

A 58-year-old woman presents with lateral shoulder pain that worsens when reaching overhead to place dishes in a cabinet. Examination demonstrates positive Neer and Hawkins impingement tests. Which diagnosis is most likely?

A 30-year-old woman presents with sudden severe right flank pain radiating toward the groin, nausea, vomiting, and microscopic hematuria. Which diagnosis is most likely?

A 23-year-old recreational soccer player twists her right ankle after landing on another player’s foot. The ankle rolled inward and the foot turned inward. Examination demonstrates lateral ankle swelling and tenderness. Which type of ankle sprain is most likely?

A 72-year-old woman is newly diagnosed with osteoporosis without contraindications to therapy. Which medication class is considered first-line treatment?