Administracion De Deuda

a) In the financial theory we know that equity investment risk can be reduced by diversifying investments across a number of stocks, risks that cannot be eliminated through such diversification of risk is termed systematic risk. Fluctuations in business cycles, in inflation or in stock market liquidity may be sources of systematic risk. Nonsystematic risk factors are risks that are not determinable to the systemic risk factors.

b) Term structure is those that can be associated with changes. The non-term structures are sector risk, optionality risk, coupon risk, MBS sector risk.

c) MBS sector risk, volatility risk and prepayment risk

Chapter 25

2.

Manager 1: .09+.13+.22+(-.18)/4 = .065 = 6.5%

Manager 2: .25+.13+.22+(-.24)/4 = .09 = 9%

3.

Manager 1: ((1+0.09)(1+0.13)(1+0.22)(1+(1+-0.18))ˆ1/4 = .0536 = 5.36%

Manager 2¬: ((1+0.25)(1+0.13)(1+0.22)(1+(1+-0.24))ˆ1/4 = .0698 = 6.98%

6.

a) 200,000,000 = 20,000,000/1.04055092408 + - 8,000,000/(1.04055092408)ˆ2 + 4,000,000+208,000,000/(1.04055092408)ˆ3 = .04055 = 4.055%

b) 200,000,000 = 20,000,000/ 1.054059618263 + 0/ 1 (1.054059618263) ˆ2 + 4,000,000+208,000,000/ (1.054059618263) ˆ3 = .05406 = 5.406%

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