HW1 - Econ 4751 HW 1 Due on Thursday 09/24/2009 The...

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Econ 4751 HW 1 Due on Thursday 09/24/2009 The Investment Environment (10’) 1. Discuss the similarities and differences between real and financial assets. (10’) 2. Discuss the following ongoing trends as they relate to the field of investments: globalization, financial engineering, securitization, and computer networks.
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Asset Classes and Financial Instruments (15 ’) 1. a. A broker recommends you a U.S. Treasury-bill, saying it promises an annualized return of 10%, while the bond return is around 2%, and recent stock is low. He also mentions the T-bill will mature in 200 days. Will you take his suggestion and buy the T-bill? b. There is a T-bill matured in 180 days, and its bid and asked prices are 5.02 and 5.00 according to bank discount method. According to these two numbers, what are the transactions prices to buy and sell this T-bill on the market? Suppose its denomination is $10,000.
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This note was uploaded on 02/17/2011 for the course ECON 4751 taught by Professor None during the Spring '11 term at Algoma University.

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HW1 - Econ 4751 HW 1 Due on Thursday 09/24/2009 The...

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