金融学(博迪)英文版课后习题答案

金融学(博迪)英文版课后习题答案

CONTENTS

Chapter 1: Financial Economics 1-1

Chapter 2: Financial Markets and Institutions 2-1

Chapter 3: Managing Financial Health and Performance 3-1 Chapter 4: Allocating Resources Over Time 4-1

Chapter 5: Household Saving and Investment Decisions 5-1 Chapter 6: The Analysis of Investment Projects 6-1 Chapter 7: Principles of Market Valuation 7-1

Chapter 8: Valuation of Known Cash Flows: Bonds 8-1 Chapter 9: Valuation of Common Stocks 9-1

Chapter 10: Principles of Risk Management 10-1

Chapter 11: Hedging, Insuring, and Diversifying 11-1 Chapter 12 Portfolio Opportunities and Choice 12-1 Chapter 13: Capital Market Equilibrium 13-1 Chapter 14: Forward and Futures Markets 14-1

Chapter 15: Markets for Options and Contingent Claims 15-1 Chapter 16: Financial Structure of the Firm 16-1 Chapter 17: Real Options 17-1 CHAPTER 1 – Financial Economics End-of-Chapter Problems Defining Finance

1. What are your main goals in life? How does finance play a part in achieving those goals? What are the major tradeoffs you face? SAMPLE ANSWER: Finish school

Get good paying job which I like Getmarried and have children Own my own home Provide for family

Pay for children’s education Retire

How Finance Plays a Role: SAMPLE ANSWER: Finance helps me pay for undergraduate and graduate education and helps me decide whether spending the

money on graduate education will be a good investment decision or not.

Higher education should enhance my earning power and ability to obtain a job I like.

Once I am married and have children I will have additional financial responsibilities (dependents) and I

will have to learn how to allocate resources among individuals in the household

and learn how to set aside enough

money to pay for emergencies, education, vacations etc. Finance also helps me understand how to manage risks such as for disability, life and health.

?Finance helps me determine whether the home I want to buy is a good value or not. The study of finance

also helps me determine the cheapest source of financing for the purchase of that home.

Finance helps me determine how much money I will have to save in order to pay for my children’s

education as well as my own retirement. Major Tradeoffs: SAMPLE ANSWER Spend money now by going to college (and possibly graduate school) but presumably make more money

once I graduate due to my higher education. Consume now and have less money saved for future expenditures such as for a house and/or car or save

more money now but consume less than some of my friends