Your parents give you $2,000 as a graduation gift and you decide to invest the money in the stock market. If you are risk averse, should you purchase some stock in a few different companies through a web site with low transaction fees or put the entire $2,000 into a mutual fund? Explain your answer.
Answer to relevant QuestionsSuppose a new website was launched providing up-to-date, credible information on all firms wishing to issue bonds. What would you expect to see happen to the overall level of interest rates in the bond market?Under what circumstances, if any, would you be willing to participate as a lender in a peer-to-peer lending arrangement?Financial crisis is often associated with rising, and then persistently high, unemployment rates. Plot the U.S. unemployment rate during the Great Depression until the end of the 1930s (FRED code: M0892AUSM156SNBR). Compare ...Explain how a bank uses liability management to respond to a deposit outflow. Why do banks prefer liability management to asset management?Consider a bank with the following balance sheet. You read in the local newspaper that the bank’s return on assets (ROA) was 1 percent. What were the bank’s after-taxprofits?
Post your question