博迪_投资学第九版_英文答案

博迪_投资学第九版_英文答案

CHAPTER 1: THE INVESTMENT ENVIRONMENT

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.

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 increasing the cost of capital. A higher cost of capital results in less

investment and lower real growth. 4.