[经济学]经济学原理第五章课件.pptVIP

The Basic Tools of Finance 27 In this chapter, look for the answers to these questions: What is “present value”? How can we use it to compare sums of money from different times? Why are people risk averse? How can risk-averse people use insurance and diversification to manage risk? What determines the value of an asset? What is the “efficient markets hypothesis”? Why is beating the market nearly impossible? A C T I V E L E A R N I N G 1 Present value You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in five years. A. Should you buy the lot if r = 0.05? B. Should you buy it if r = 0.10? A C T I V E L E A R N I N G 1 Answers You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in five years. A. Should you buy the lot if r = 0.05? PV = $100,000/(1.05)5 = $78,350.PV of lot price of lot. Yes, buy it. B. Should you buy it if r = 0.10? PV = $100,000/(1.1)5 = $62,090. PV of lot price of lot. No, do not buy it. A C T I V E L E A R N I N G 2 Adverse selection or moral hazard? A C T I V E L E A R N I N G 2 Answers A C T I V E L E A R N I N G 3 Valuing a share of stock If you buy a share of ATT stock today, you will be able to sell it in 3 years for $30. you will receive a $1 dividend at the end of each of those 3 years. If the prevailing interest rate is 10%, what is the value of a share of ATT stock today? A C T I V E L E A R N I N G 3 Answers A C T I V E L E A R N I N G 4 Show-of-hands survey You have a brokerage account with Merrill Lynch. Your broker calls you with a hot tip about a stock: new information suggests that the company will be highly profitable. Should you buy stock in the company? A. Yes B. No C. Not until you read the prospectus. D. What’s a prospectus? CHAPTER SUMMARY The present value of any future sum is the amount that would be needed today, given prevailing interest rates, to produce that future sum. Because of d