FIN 300 Lecture Notes - Lecture 1: Financial Asset, Paul Reuter, Risk Premium

• School: Ryerson University
• Department: Finance
• Course: FIN 300
• Professor: George Ganas

Document Summary

Email prof through avenue rather than mcmaster email. Do(cid:374)"t have to (cid:373)e(cid:373)orize the for(cid:373)als for the e(cid:454)a(cid:373: introduction: the financial landscape. To observe what happens when financial markets break down. Financial market grease wheels of the real economy. When financial markets are in crisis, the real economy is in crisis. This becomes painfully obvs in the fall of 2008 when financial markets around the whole were on the verge of melting down. Efficient trnasger of funds from those with excess to those with insufficient. Players are business, financial institutions, hosueholds, and various level of governments. Business have investment opportunities but a shortage of capital. Say there is negative flow today and a positive flow in the next year. If there is no risk, it depends on: If there is risk, it depends on the cost of capital. You will have ,000 at the end of the year.