Financial Institutions and Markets question

( Answers should be about 200 to 250 words long, you need explain the details)

1. What made a good LBO candidate?

2. Despite the criticism against mortgage-backed securities, MBSs provide real benefits to the mortgage market and to investors. Discuss its role in portfolio management as a potential diversification tool.

3. Do fund manager quality and risk appetite affect fund performance?

4. What is high frequency trading? What are the supports and concerns regarding high frequency trading?

5. Discuss the rationale and main criticisms of short-selling restrictions.

6. Does empirical evidence generally support EMH in weak or semi-strong form efficiency? Please provide some examples of the supportive evidence or evidence against it.

7. Give a few examples of psychological factors or behavioral biases that could affect investment behavior. How do they affect investment behavior?

8. How have actively managed funds performed relative to passive funds? Discuss the values provided to investors of active funds.