投资学ch01文档.pptxVIP

1;Investments Course outline ;Investments Course outline ;Investments Course outline ;Investments Course outline ;Investments: Background and Issues;1.1 Real versus Financial Assets;Concept Check 1.1;1.2 Financial Assets;1.3 Financial Markets and the Economy;Consumption Timing Consumption smoothes over time When current basic needs are met, shift consumption through time by investing;Risk Allocation Investors can choose desired risk level Bond vs. stock of company Bank CD vs. company bond Risk-and-return trade-off;Separation of Ownership and Management Large size of firms requires separate principals and agents Mitigating Factors Performance-based compensation Boards of directors may fire managers Threat of takeovers;Example 1.1 In February 2008, Microsoft offered to buy Yahoo at $31 per share when Yahoo was trading at $19.18 Yahoo rejected the offer, holding out for $37 a share Proxy fight to seize control of Yahoos board and force Yahoo to accept offer Proxy failed; Yahoo stock fell from $29 to $21 Did Yahoo managers act in the best interests of their shareholders?;Corporate Governance and Corporate Ethics Businesses and markets require trust to operate efficiently Without trust additional laws and regulations are required Laws and regulations are costly Governance and ethics failures cost the economy billions, if not trillions Eroding public support and confidence;Corporate Governance and Corporate Ethics Accounting scandals Enron, WorldCom, Rite-Aid, HealthSouth, Global Crossing, Qwest Misleading research reports Citicorp, Merrill Lynch, others Auditors: Watchdogs or consultants? Arthur Andersen and Enron;Corporate Governance and Corporate Ethics Sarbanes-Oxley Act: Requires more independent directors on company boards Requires CFO to personally verify the financial statements Created new oversight board for the accounting/audit industry Charged board with maintaining a culture of high ethical standards ;1.4 The Investment Process;1.5 Markets Ar