Do you think that widespread belief in the efficient markets theory was a significant contributor to the 2007-2009 financial crisis? Why or why not?
Answer to relevant QuestionsBased on the dividend-discount model, what do you think would happen to stock prices if there were an increase in the perceived riskiness of bonds?The Dow Jones Industrial Average (FRED code: DJIA) is a price-weighted index of 30 stocks and the S&P 500 index (FRED code: SP500) is a value-weighted average of 500 stocks. Find out which is more volatile. Plot on a ...How does the existence of derivatives markets enhance an economy’s ability to grow?An agreement to lease a car can be thought of as a set of derivative contracts. Describe them.The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot since 2000 the difference ...
Post your question