FIN 421 Study guides, Class notes & Summaries

Risk assignment of a probability to a threat vulnerability that has escalated to a hazard Risk assessment the process of measuring risk Risk management the set of actions that result in a sustainable business operating environment Risk mitigation a collection of actions to help reduce vulnerabilities to disastrous outcomes within risk mitigation period Risk contanimination process whereby a failing asset depletes the value of an otherwise healthy asset neuroinformatics It involves acq...

Real Assets Land, building gold, barrels of oil - Has to be tanageable (only exception in intellectual property) Finacial assets claims on real assets an other financial assets financial assets derive their value from underlying asset fixed income Payments fixed or determined by a formula Ex. Bonds money market short term, highly liquid, and relatively low credit risk

simple interest ratethe interest payment divided by the loan principal discounting the futureThe process of calculating today's value of dollars received in the future yield to maturityinterest rate that equates todayʼs value with present value of all future payments simple loansrequire payment of one amount which equals the loan principal plus the interest discount bondalso called a zero‐coupon bond) is bought at a price below its face value, and the face value is repaid at the ...

Lecture 2 Financial Crises Assignment - answer- Home owners in the bottom 20 percent of the net-worth distribution—the poorest home owners—had low leverage because banks refused to lend to them. A) FALSE B) TRUE - answer-A : False High debt in combination with the dramatic decline in house prices increased the already large gap between the rich and poor in the United States. A) TRUE B) FALSE - answer-A : True From 2006 to 2009, large net-worth-decline counties cut back on consumptio...

FIN 421 Exam 1 - Quiz Questions

FIN 421 Exam 1 - Quiz Questions

The geometric average of -12%, 20%, and 25% is _________. 8.42% 11% 9.7% 18.88% - answer-9.7% (.88*1.2*1.25)^1/3=1.096 1-1.096= .096 or 9.7% The inside quotes on a limit order book can be found ______. at the top of the list at the bottom of the list by taking the averages of the bid and ask prices on the list only by direct contact with the specialist who maintains the book - answer-at the top of the list Annual percentage rates can be converted to effective annual rat...