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The NZ equity market is relatively illiquid. What does this mean? What are the factors contributing to equity market illiquidity in NZ? How could the liquidity of the equity market be improved?
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- Explain the concept of efficient markets. Are the equity capital markets inefficient?1) What id the essential purpose for financial markets? 2) Which is more important, the primary market for stocks of the secondary market? Why? 3) How does a ponzi scheme work? 4) Discuss some of the forces that help make markets efficient? 5) What are institutional investors? Why are they needed in our economy? 6) What are some of the differences between a forward contract and a future contract?2. If the value of the financial sector is in terms of reducing the individual risk in the economy, how could you measure the value of the financial sector without using information on loan payments (broadly construed to include any interest payment necessary to measure an interest rate or any payment that looks like a return on an investmemt)? If we think of the amount of individual risk remaining after individuals buy portfolios is a measure of the ineffectiveness of the financial sector [or its imperfections], what do you think accounts for these imperfections?
- Equity price risk can be either systematic or ( ) risk. In a global economic crisis, equity price risk is ( ) because it affects multiple assets classes.What is Efficient Market Hypothesis (EMH) Does the Global Financial Crisis of 2008-09 support or invalidate the EMH? article if needed: The Global Financial Crisis and the Efficient Market Hypothesis, What have we learned?What are efficient markets? Imagine if the price of a stock is going up and financial markets are efficient what can you tell us about the nature of the stock? What if the markets are inefficient then how would you react to increasing prices for a particular stock?
- Increasing a country's risk-free rate could _______ the cost of equity to an MNC in that country; increasing a country's risk-free rate could ________ the cost of debt to an MNC in that country, assuming that the other things held constant. A. increases; not affect B. not affect; increase C. increase; increase D. not affect; not affectDiscuss how the concept of pure security, short selling and no arbitrage profit help establish and understand the equilibrium from the capital markets. Discuss different economic determinants security prices. Kindly answer the question as soon as possible.Which of the following is not a determinant of investment? a) The efficiency of capital equipment b) The level of consumer demand c) Interest rates d) The willingness of investors to buy new share issues
- What is a "Bubble?" Does a bubble in the Stock Market mean that the Market is not efficient?how do banks improve their net profit margin to increase Return on Equity? what are the risk implications ?Assume that the risk-free rate increases, but the market risk premium remains constant. What impact would this have on the cost of debt? What impact would it have on the cost of equity? How should the capital structure weights are used to calculate the WACC be determined?