Financial Markets-final
1. Why was the Yale portfolio primarily in bonds and other “safe” investments? • Yale was following the best practice advice of Joe McNay • Yale did not want the strong variation that are common in investment • Yale had too much money for other investments • Yale did not have a portfolio manager 2. Which of the following is NOT an example of moral hazard? • Lying about farming yields to collect insurance money. • Neglecting to replace smoke detector batteries when insured against fire. • Knowingly building a house in an area susceptible to floods
Written for
- Institution
- University of South Africa
- Course
- Financial Markets-final
Document information
- Uploaded on
- October 17, 2021
- Number of pages
- 7
- Written in
- 2021/2022
- Type
- Exam (elaborations)
- Contains
- Questions & answers