1. What is the economic function of speculation? 2. Can you explain why an “excessive” financial manager and a narrow minded businessman will be unable to understand each other? 3. What conditions are...

1. What is the economic function of speculation? 2. Can you explain why an “excessive” financial manager and a narrow minded businessman will be unable to understand each other? 3. What conditions are necessary for arbitrage to work? 4. What is economic function of arbitrage? 5. Would you be speculating if you bought so-called risk-free government bonds? What types of risk is not present in “risk-free” bonds? 6. It is true that investors who lost money on internet shares in early 2000 would not have lost anything if they had held onto their shares instead? State your views. 7. What is a speculative market?


1. What is the economic function of speculation? 2. Can you explain why an “excessive” financial manager and a narrow minded businessman will be unable to understand each other? 3. What conditions are necessary for arbitrage to work? 4. What is economic function of arbitrage? 5. Would you be speculating if you bought so-called risk-free government bonds? What types of risk is not present in “risk-free” bonds? 6. It is true that investors who lost money on internet shares in early 2000 would not have lost anything if they had held onto their shares instead? State your views. 7. What is a speculative market?