answer the question
Chapter 1
Problem Sets (Paraphrase with your own words.)
1. What are the differences between real assets and financial assets?
2. Explain three broad types of financial assets.
3. Explain the informational role.
4. Explain several mechanism that mitigate potential agency problems.
5. Explain efficient markets.
6. Why had the rating agencies so dramatically underestimated credit risk in these subprime securities?
Chapter 2
Problem Sets (Paraphrase with your own words.)
1. Explain Treasury Bills.
2. Explain Treasury Notes and Bonds.
3. Explain Municipal Bonds.
4. Explain Characteristics of Common Stock.
5. Explain the difference between Price-Weighted Index and Value-Weighted Index.
6. Explain Call Option and Put Option with examples.
Requirements:
Look at chapter 1, Chapter 2 and the content of the e-book to answer the questions, each about 100 words.