fin402 Financial Institutions and Markets
- All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
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Q1. “The more risk-averse people are, the more likely they are to diversify.” Is this statement true, false, or uncertain? Explain your answer.
Q2. Define the concept of Standard Deviation and how to help to evaluate different investment choices?
Q3. Explain the relation between Interest rate and Bonds quantity level?
Q4. Do credit rating agencies do a good job at assessing credit risk?
Q5. Emphasise fundamentals of financial institutions within financial markets? Outline the role of financial intermediates and how important to financial systems?
Q6. Why do financial markets exist? How would the economy function without them? What are the potential disadvantages of financial intermediaries? Discuss
