ESSEN.OF.INVESTMENTS+CONNECT
ESSEN.OF.INVESTMENTS+CONNECT
10th Edition
ISBN: 9781260361605
Author: Bodie
Publisher: MCG
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Chapter 1, Problem 8PS
Summary Introduction

(a)

To determine:

The effect on the stocks of real assets of economy if housing price falls by 10%.

Introduction:

Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.

Summary Introduction

(b)

To determine:

The effect of the fall of housing prices on individuals has to be determined.

Introduction:

Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.

Summary Introduction

(c)

To determine:

Reconciliation between the two answers mentioned in part (a) and (b).

Introduction:

Real assets are the type of assets which are commonly present as physical assets such as any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.

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