InvestmentsMBA536-25页PPT资料
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1. Additional sources of risk – exchange rate volatility
Chapter 5: Introduction to Risk and Return
III. SUPPLY OF LOANABLE FUNDS A. Households are net suppliers of funds. B. The supply of funds is a function of risk and return. C. The supply of funds is also subject to investor preferences. D. Governments may also supply funds (credit or specie).
Chapter 5: Introduction to Risk and Return
V. KEY ISSUES REGARDING INTEREST RATES
A. Does US Gov’t borrowing affect rates? B. What impact do foreign rates have on domestic rates? C. What other exogenous events affect interest rates? D. Do shortages in the commodities markets affect rates?
Chapter 5: Introduction to Risk and Return
II. DEMAND FOR [LOANABLE] FUNDS A. Households
1. Consumption and saving a function of income 2. Consumption above current income levels financed with
Chapter 5: Introduction to Risk and Return
I. STUDENT LEARNING OBJECTIVES A The role of supply and demand for funds B The concept of market equilibrium C How does the government affect supply and demand? D Can we predict future interest rates? E The risk premium concept
Unit 2: Risk and Return
❖ Unit 2 begins our journey into the fundamental analysis of risk and return. As we delve into the statistical nature of risk measurement, we must remind ourselves that the market is always and everywhere an expectations phenomenon. We don’t really know a lot about the future. We know quite a bit about the past and attempt to use it as a guide to discerning the future. A caution is warranted as we observe the elaborate mathematical and statistical models that purport to explain the market’s behavior. We note with interest the disclaimer in every prospectus; “…past performance is no guarantee of future performance, investigate before you invest…”
❖ The short answer to the above questions: How do these things affect investor perceptions of economic risk? Once we have settled the risk question (and its time frame dimension) we can begin to understand how rates are set and how thesey.
B. Changes in the Equilibrium Interest Rate
1. Change in response to changes in supply of funds 2. Change in response to changes in demand for funds
C. Fisher Effect: accounting for effects of inflation
Chapter 5: Introduction to Risk and Return
IV. EQUILIBRIUM INTEREST RATE A. Equilibrium ≡ point at which markets clear (no excess supply or demand).
1. Question: Is an equilibrium point observable? 2. Question: Is equilibrium an important concept?
borrowing.
B. Business
1. Finance asset expansion (20% using external capital)
C. Government
1. Demand for funds Inelastic with respect to rates.
D. Foreign
Chapter 5: Introduction to Risk and Return
III. SUPPLY OF LOANABLE FUNDS A. Households are net suppliers of funds. B. The supply of funds is a function of risk and return. C. The supply of funds is also subject to investor preferences. D. Governments may also supply funds (credit or specie).
Chapter 5: Introduction to Risk and Return
V. KEY ISSUES REGARDING INTEREST RATES
A. Does US Gov’t borrowing affect rates? B. What impact do foreign rates have on domestic rates? C. What other exogenous events affect interest rates? D. Do shortages in the commodities markets affect rates?
Chapter 5: Introduction to Risk and Return
II. DEMAND FOR [LOANABLE] FUNDS A. Households
1. Consumption and saving a function of income 2. Consumption above current income levels financed with
Chapter 5: Introduction to Risk and Return
I. STUDENT LEARNING OBJECTIVES A The role of supply and demand for funds B The concept of market equilibrium C How does the government affect supply and demand? D Can we predict future interest rates? E The risk premium concept
Unit 2: Risk and Return
❖ Unit 2 begins our journey into the fundamental analysis of risk and return. As we delve into the statistical nature of risk measurement, we must remind ourselves that the market is always and everywhere an expectations phenomenon. We don’t really know a lot about the future. We know quite a bit about the past and attempt to use it as a guide to discerning the future. A caution is warranted as we observe the elaborate mathematical and statistical models that purport to explain the market’s behavior. We note with interest the disclaimer in every prospectus; “…past performance is no guarantee of future performance, investigate before you invest…”
❖ The short answer to the above questions: How do these things affect investor perceptions of economic risk? Once we have settled the risk question (and its time frame dimension) we can begin to understand how rates are set and how thesey.
B. Changes in the Equilibrium Interest Rate
1. Change in response to changes in supply of funds 2. Change in response to changes in demand for funds
C. Fisher Effect: accounting for effects of inflation
Chapter 5: Introduction to Risk and Return
IV. EQUILIBRIUM INTEREST RATE A. Equilibrium ≡ point at which markets clear (no excess supply or demand).
1. Question: Is an equilibrium point observable? 2. Question: Is equilibrium an important concept?
borrowing.
B. Business
1. Finance asset expansion (20% using external capital)
C. Government
1. Demand for funds Inelastic with respect to rates.
D. Foreign