Running head: PORTFOLIO ANALYSIS
David J. Millsap, Herbert Aliga, and Adriana Cantu
University of Redlands
February 24, 2016
Our team was tasked with creating and managing a portfolio of U.
1. How can a bursting of an asset-price bubble in the stock
market help trigger a financial crisis?
Asset-price bubble is the rise of prices in the stock market. Therefore, at the
bursting point, it causes all the stocks prices to realign to regular value
1. How can economies of scale help explain the existence
of financial intermediaries?
High transaction cost greatly affect the average American because they don't
have the money to diversify their investing* money. Which intermediaries are
cheaper to inve
Chapter 11 Questions
1. What characteristics define the money markets?
The money markets can be characterized as having securities that trade in
one year or less, are of large denomination, and are very liquid.
2. Is a Treasury Bond issued 29 years ago wi
Ejercicio: Tasa de rendimiento
P8.1 Tasa de rendimiento Douglas Keel, un analista financiero de Orange Industries, desea
calcular la tasa de rendimiento de dos inversiones de riesgo similar, X y Y. La investigacin de
Douglas indica que los rendimientos pa