Risks do bonds present versus other forms of financing

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1. Do you support General Motors choice to use bonds for financing or investment purposes? Why or why not? What benefits and risks do bonds present versus other forms of financing?

2. Sam's wealth is $20,000 with a probability of 0.10 Sam will total his car losing $10,000. Sams utility function for the wealth is given by U(w)=lnw. What is Sam's certainty equivalent?

3. List 6 kinds of contraints(equation) when making endowment fund and write a brief explanation.

Reference no: EM132068697

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Risks do bonds present versus other forms of financing : What benefits and risks do bonds present versus other forms of financing?

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