Explain how differences in individuals’ risk attitudes
impact on their ideal portfolio. What is the implication that
finance theories typically assume that the majority of investors
are risk averse?
Carefully explain what is happening in the market. Indicate the
impact if any on demand, supply, price and quantity:
a) Fears of mercury poisoning lead locals to shun fish caught in
nearby rivers
Impact on demand
Impact on supply
Impact on price
Impact on quantity
b) In the market for milk, increases in the price of Christmas
trees cause trees to be planted on land previously used by dairy
farmers.
Impact on demand
Impact on supply
Impact on price
Impact...
Why are bond ratings so important to a firm?
Why are bond ratings important to external users?
Explain the importance of bond ratings in assessing risk.
Did the man's actions justify him losing his job? Why or why
not?