Question

In: Finance

True Or false I tried but I dot know F When interest rates rise, the value...

True Or false I tried but I dot know

F When interest rates rise, the value of an existing fixed rate instrument like a mortgage increases.
F A passive investor does not expect to earn a profit.
T The four quadrants are debt, equity, mezzanine and liquidity.
A problem with the public market includes the fact that they may over react and are generally slow to react.

Solutions

Expert Solution

Statement 1 is False When interest rate value of mortgage falls.
Statement 2 is False. Passive investor does not try to beat the market but can get market return.
Statement 3 is true
Statement 4 is true. This phenomenon of overreacting or reacting slow is based on animal spirit


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