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博迪投资学第九版英文答案

C H A P T E R1:T H E I N V E S T M E N T E N V I R O N M E N T

PROBLEM SETS

1.Ultimately, it is true that real assets determine the material

well being of an economy. Nevertheless, individuals can

benefit when financial engineering creates new products that

allow them to manage their portfolios of financial assets

more efficiently. Because bundling and unbundling creates

financial products with new properties and sensitivities to

various sources of risk, it allows investors to hedge

particular sources of risk more efficiently.

2.Securitization requires access to a large number of potential

investors. To attract these investors, the capital market

needs:

1. a safe system of business laws and low probability of

confiscatory taxation/regulation;

2. a well-developed investment banking industry;

3. a well-developed system of brokerage and financial

transactions, and;

4.well-developed media, particularly financial reporting.

These characteristics are found in (indeed make for) a well-

developed financial market.

3.Securitization leads to disintermediation; that is,

securitization provides a means for market participants to

bypass intermediaries. For example, mortgage-backed

securities channel funds to the housing market without

requiring that banks or thrift institutions make loans from

their own portfolios. As securitization progresses,

financial intermediaries must increase other activities such

as providing short-term liquidity to consumers and small

business, and financial services.

4.Financial assets make it easy for large firms to raise the

capital needed to finance their investments in real assets.

If Ford, for example, could not issue stocks or bonds to the

general public, it would have a far more difficult time

raising capital. Contraction of the supply of financial

assets would make financing more difficult, thereby