1. Evaluate and contrast the indirect finance and direct finance. Which is more likely to have a larger share of the total financial market in a mature economy? Why?
2. Calculate the relationship between the efficiency of a financial system and the rate of economic growth?
3. Explain the major types of risks to financial securities, and give a explicit example of each. How do investors measure risk?
4. Discuss and explain three factors other than expected return and risk that affect the demand for financial securities.