Financial Bubble

1928 words 8 pages
Show More
National Chengchi University
Department of Finance
ETP Graduate Investments
Fall 2010

Case Discussion Questions

Instructor: Professor Edward H. Chow 周行一

Case study: financial bubble
Case: Trouble with a bubble (9-808-067)
1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau?
2. Why did the stock market crash in 1929?
3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary?

Case study: investment banking business and global financial crisis
Case: Investment banking in 2008 (A): Rise and fall of the Bear (KEL378)

1. What role did Bear’s culture play in its positioning vis-à-vis its competitors, and what role might that …show more content…

3, Develop a presentation to Henry Bosse using the analysis from the case.
4. An Excel data file is available on the website for students to use.

Case study: Market efficiency and investment strategy
Case: Dimensional Fund Advisors, 2002 (9-203-026)

1. What is DFA’s business strategy? What do you think of the firm? Are the DFA people really believers in efficient markets?
2. Do the Fama-French findings make sense? Should we expect small stocks to outperform large stocks in the future? Value stocks to outperform growth stocks?
3. Why has DFA’s small stock fund performed so well?
4. Is DFA’s tax-managed fund family likely to be successful, or remain just a small niche market?
5. What should be the firm’s strategy going forward?

Case Study: Security design and selection
Case: Corning: Convertible Preferred Stock (9-206-018)

1. Describe Corning’s business. How has the firm performed? What accounts for the changes in valuation in Corning stock in Exhibit 2? Trying to avoid hindsight bias-and this is very hard to do-could Corning’s troubles have been forecasted before 2001?
2. Evaluate Corning’s financing strategy. How has the firm raised capital in the past?
3. Why does Corning need to raise

Related

  • Housing Bubble
    2907 words | 12 pages

    Wikipedia a housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. Four years into the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame. In my research paper I will try and demonstrate what a housing bubble is, some of the reasons….

    Show More
  • lending market and its aftermath reflec
    4730 words | 19 pages

    explain the KAM model, then identify the initial dislocation triggering the bubble,Describe the Aliber-paradigm. Explain utilizing the housing bubble that has occurred in the past 8 years. Also explain your position on the bubble housing crisis. Describe the stages of the bubble for the aliber-paradigm. Using the paradigm to explain problems in stock market and housing bubble burst. The Leir Center For Financial Bubble Research Working Paper #1 THE KINDLEBERGER-ALIBER-MINSKY PARADIGM AND THE….

    Show More
  • Asian Economics Comment Bubble House
    2230 words | 9 pages

    Prof, Jima G.DeLeon, MBA Professor, School of Graduate Studies Central Philippine University In Partial Fulfilment of the Course Requirement in MBA 612 Financial Systems Presented by: Mehrdad Alavi MBA Thesis Option September 13, 2013 I. PRELINMINARY 1- The title of paper is Asian Economics Comment, The anatomy of bubbles, part 1. It is written at August 27 2009 by Dr, Feredric Neumman, whom is senior Asian Economist. The issuer of report is The Hongkong and….

    Show More
  • Global Prospects and Their Likely Impact on South Africa
    3297 words | 14 pages

    Contents Global prospects and their likely impact on South Africa 1 INDEX: 1 Strength of the Recovery 2 Developed Countries: 2 Emerging Markets: 2 Risks to the Global Economy 3 Exit Strategy from Policy Stimulus 4 Repair and reform of the financial sector 4 Fiscal Crises and underinvestment in Infrastructure 4 Socio and Political Implications of Unemployment and Private Demand 5 Asset Price Collapse and the risk appetite of investors 5 Return to Previous Growth Path or Not 5 Will the current….

    Show More
  • Essay Dot com bubble
    1671 words | 7 pages

    Dot-com bubble The dot-com bubble was a historic speculative bubble covering roughly 1997 – 2000 (with a peak on March 10, 2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the Internet sector and related fields. While the latter part was a boom and bust cycle, the Internet boom is sometimes meant to refer to the steady commercial growth of the Internet with the advent of the World Wide Web, as exemplified by the first release of the Mosaic….

    Show More
  • Case Study - Economic Turmoil in Latvia
    986 words | 4 pages

    using aggressive lending to grow the increased inflow of foreign capital, most of which came from Russia. This lead to a property bubble, similar to what was happening in the United States of America (US), prices were being bid up by borrowers who had access to cheap loans. Before the government could step in to control the bubble that was created the property bubble in the US burst sending a rippling affect through the world. This was hardest felt by the banking sector, which now had to reclaim….

    Show More
  • The Dishonesty of Honest People (Paper Summary)
    1585 words | 7 pages

    Dishonesty of Honest People: A theory of Self-Concept maintenance. Main idea    People think of themselves as honest. Yes, in reality dishonesty pays quite generously (give examples) The paper demonstrates that their convenience people become dishonest enough to profit but also behave honestly enough to maintain their self-concept. Why are People Dishonest?               Origins of theory date from Adam Smith/Thomas Hobbes using Homo Economicus as a base reference. Aka “Rational….

    Show More
  • The Causes of Subprime Mortgage Financial Crisis
    2217 words | 9 pages

    Mortgage Financial Crisis By Jessica Tian Abstract The U.S. subprime mortgage crisis was a set of events that led to the 2008 financial crisis, characterized by a rise in subprime mortgage defaults and foreclosures. This paper seeks to explain the causes of the U.S. subprime mortgage crisis and how this has led to a generalized credit crisis in other financial sectors that ultimately affects the real economy. In recent decades, financial industry has developed quickly and various financial innovation….

    Show More
  • The Inside Job - Review
    2223 words | 9 pages

    looks back to the rise of the financial industry. The biggest question which the documentary arouses is that knowing what happened, why are the miscreants not being punished? As the director, Charles Ferguson, himself stated while receiving the Oscar, “Forgive me, I must….

    Show More
  • Wall Street: Money Never Sleeps
    1394 words | 6 pages

    Project B: movie response Global Financial Ethics – FIN6620 The movie response that will be covered in this essay will be on the film “Wall Street Money Never Sleeps ”. It was directed by Oliver Stone, released during 2010 and is the sequel to the 1987 film “Wall Street”. The film starts with the release from jail of Michael Douglas' Gordon Gekko before cutting to a rather elaborate plot involving Shia LaBeouf as the young trader with (some) scruples, who's rising in a world that just happens….

    Show More

Popular Essays