Not getting our previous test back today. Professor left them at her house on accident. Based on her statements, however, it’s not going to be a great one.There’s currently a lot of economic trouble stemming from bad mortgage agreements. Some discussion of this at the beginning of class. Essentially, lenders were bending rules to make large loans to people they shouldn’t have. Giving loans to unqualified borrowers. If anything goes wrong for the borrower, they have to default on the loan, and both sides lose.
Chapter 7: The Theory of Portfolio Choice and Efficient Markets
Wealth is all the resources owned by a person.
A portfolio is the set of financial instruments an individual possesses.