1-How do financial markets that run freely andefficiently affect the standard of living in a country?

2-What does it mean for a financial market tobe considered (a) informationally efficient and (b) economicallyefficient?

3-Do you think investors can earn abnormalreturns in financial markets that are at least semistrong-formefficient?

4-When the SEC approves a stock issue, it doesnot provide an opinion about the value of the stock. Do you thinkthe SEC should give an opinion to investors on the appropriatevalue of the stock being issued? Explain.

5-What economic functions do financialintermediaries perform?

6-Do you think that the financial servicesindustry will be more reregulated or deregulated in the future?Explain.

7-How do you think intermediaries'characteristics will change in the future?

8-How do financial institutions in the UnitedStates differ from financial institutions in other parts of theworld? Why?

9-Express Courier (EC) needs $141 million tosupport future growth. If it issues common stock to raise theneeded funds, EC will have to pay its investment banker 6 percentof the issue's total value. If EC can issue common stock at amarket price of $80 per share, how many shares must be issued sothat the company has $141 million after flotation costs tofund the planned growth?

10-Jewel Regal Cars (JRC) must raise $240million to support operations. To do so, JRC plans to issue newbonds. Investment bankers have informed JRC that the flotationcosts will be 4 percent of the total amount issued. If the marketvalue of each bond is $1,000, how many bonds must JRC sell tonet $240 million after flotation costs? Assumethat fractions of bonds cannot be issued.