国际金融seminar2资料.pptVIP

Seminar 2 #1 Topic 8 Which risk management technique has been chosen in each of the following situations? Installing a smoke detector in your home Investing savings in T-bills rather than in stocks Deciding not to purchase collision insurance on your car Purchasing a life insurance policy for yourself 2 Selection of risk-management techniques Risk avoidance Avoid going into certain professions Loss prevention and control Reduce the exposure to the risk of illness Risk retention Save for illness Risk transfer Buy insurance 3 Answer: Loss prevention and control. Risk avoidance Risk retention Risk transfer 4 #2 Topic 9 Note whether the following are ways to avoid losses through hedging or insuring: Purchase a put option on a stock you do own. Agree to purchase a house in one year for a fixed price of $200,000. Lease a car with an option to purchase it in three years. Enter into a swap contract to exchange fixed interest payments for floating-rate payments because you have floating-rate assets. As a wheat grower, enter into a forward contract to sell your wheat in two months at a fixed price set today. Pay a premium for catastrophic health care coverage. 5 Answer: Purchase a put option on a stock you do own. (Insuring) Agree to purchase a house in one year for a fixed price of $200,000. (Hedging) Lease a car with an option to purchase it in 3 years. (Insuring) Enter into a swap contract to exchange fixed interest payments for floating-rate payments because you have floating-rate assets. (Hedging) As a wheat grower, enter into a forward contract to sell your wheat in 2 months at a fixed price set today. (Hedging) Pay a premium for catastrophic health care coverage. (Insuring) 6 #3 Topic 10 Suppose an investor invests 75% in the tangency portfolio and 25% in the riskless asset. What is the expected rate of return and standard deviation of this portfolio? If the investor has $100,000, how much will he invest in Risky Asset 1, Risky Asset 2 and riskless asset? 7 Answer: 8 W