Questions from Financial Markets

Q: Why would a pension fund or insurance company consider selling stock index

Why would a pension fund or insurance company consider selling stock index futures?

Q: How will U.S. interest rates be directly affected by

How will U.S. interest rates be directly affected by the event (holding other factors equal)?

Q: The government intervened to resolve problems in the mortgage markets during the

The government intervened to resolve problems in the mortgage markets during the credit crisis. Summarize the advantages and disadvantages of the government intervention during the credit crisis. Shou...

Q: Should members of Congress be allowed to enact laws on accounting and

Should members of Congress be allowed to enact laws on accounting and financial matters while receiving donations from related lobbying groups?

Q: What alternative sources of information about a firm should investors rely on

What alternative sources of information about a firm should investors rely on if they cannot rely on financial statements?

Q: Should investors have confidence in ratings by analysts who are affiliated with

Should investors have confidence in ratings by analysts who are affiliated with securities firms that provide consulting services to firms? Explain.

Q: How will economic growth in the United States be affected by the

How will economic growth in the United States be affected by the event? How might this influence the values of securities?

Q: Assume that the perceived risk of corporations in the United States is

Assume that the perceived risk of corporations in the United States is expected to increase. Explain how the yield of newly issued U.S. corporate bonds will change to a different degree than will the...

Q: Would you recommend high-risk or low-risk money market

Would you recommend high-risk or low-risk money market securities? Would you recommend high-risk or low-risk bonds? Why?

Q: An insurance company maintains a large portfolio of U.S.

An insurance company maintains a large portfolio of U.S. stocks. Which of the following would be more appropriate? Sell stock index futures contracts. Remain unhedged. Defend your recommendation.