ch11 Asset Markets.ppt

Chapter Eleven
Asset Markets
资金市场
Structure
When to sell an asset?
Rate-of-return
Arbitrage
Taxation of asset returns
Depletable resources
Financial intermediaries
Assets (资产)
An asset is modity that provides a flow of services over time.
. a house, or puter.
A financial asset (金融资产)provides a flow of money over time -- a security.
Assets
Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty.
Selling An Asset
Q: When should an asset be sold?
When its value is at a maximum?
No. Why not?
Selling An Asset
Suppose the value of an asset changes with time according to
Selling An Asset
Value
Years
Selling An Asset
Maximum value occurs when
That is, when t = 50.
Selling An Asset
Value
Years
Max. valueof $24,000is reachedat year 50.
Selling An Asset
The rate-of-return (回报率)in year t is the e earned by the asset in year t as a fraction of its value in year t.
. if an asset valued at $1,000 earns $100 then its rate-of-return is 10%.