Unit 2: Discussion Question 1

·         Prompt: Discuss the profound impact risk has on financial decisions. Most financial instruments and the pricing of those instruments reflect this uncertainty. Loans get turned down due to uncertainty, or are priced higher to compensate for the percentage expected to fail. Stock prices rise and fall due to uncertainty. Debt contracts have reporting and collateral provisions because of uncertainty. Reference Ecclesiastes 8:7.

·         Requirements: 250 words minimum initial post, 100 words minimum reply

 

Unit 2: Discussion Question 2

·         Prompt: Discuss how the subprime mortgage crisis of 2007 was based upon the flawed financial model that house prices only increase.

·         Requirements: 250 words minimum initial post, 100 words minimum reply