Choose 1 question from each topic 1 and 2 and both questions from Topic 3.

Total questions answered is 4

Compose answers/explanations of minimum 10 sentences

Topic 1 – Choose 1
a. Watch the documentary Mind Over Money explain Behavioral Finance vs Efficient Market Hypothesis 3 pts

OR

b. Research what it means that markets are informationally efficient? This can have an impact on investing styles: Active and Passive investment strategies. Explain which investment style you believe you are most interested in. 3pts

Topic 2 – Choose 1
a. During the 2008 Financial Crisis MBS, CDOs and CDS had a certain relationship. Discuss how banks, insurance companies and rating agencies were involved with MBS, CDOs and CDS. (you can also watch The Big Short to support your response) 3 pts

OR

b. The most important aspect of derivatives is understanding the risk management in each specific type of instrument. Evaluate the similarities and difference between futures margin accounts and options premiums. How are these derivatives used to hedge risk and can they be used to take on risk? (you can also watch Margin Call to support your response)3 pts

Topic 3 – Complete both
· Robo-Investing is quickly becoming a popular investment style today. Should small investors beware of these types of money managers. Do you think you should know how it all works? 3 pts

AND

· Compare and contrast Hedge funds vs Venture Capitalist funds. What are the similarities and differences between them? Compare them on

· type of analysis: do they use quantitative, qualitative, maybe a blend?

· Type of instruments: do they use equity, debt, derivatives, customized or something else

· How do they earn returns for their investors/clients: hedging, speculating, M+A, IPOs or something else

· Anything else important to show similarity or difference between the 2 types of money managers

3 pts