PRINCIPLES

Question 1

DOT COM BUBBLE PRINCIPLE IGNORED (10)
PERIOD? _______ - PEAK _________, LOST ______

Answer 1

Risk-Return Trade-Off
Time Value of Money
Cash, Not Profit, Is King
Incremental Cash Flows
Curse of Competitive Markets
Efficient Capital Markets
The Agency Problem
Taxes Bias Business Decisions
All Risks Are Not Equal
Ethical Behavior
PERIOD 1995 - PEAK 2000, LOST 2002

Question 2

THE US HOUSING BUBBLE PRINCIPLE IGNORED (3)
PERIOD? ______ ,FINANCIAL CRISIS______

Answer 2

Curse of Competitive Markets:
All Risks Are Not Equal:
Ethical Behavior
PERIOD MID 2000, FINANCIAL CRISIS 2008

Question 3

THE BERNIE MADOFF CASE PRINCIPLE IGNORED (3)
PERIOD? FOUNDED__, EXPOSED_____

Answer 3

Risk-Return Trade-Off:
Cash - Not Profit - Is King:
Ethical Behavior Is Doing the Right Thing:
PERIOD FOUNDED 1960, EXPOSED DEC 2008

Question 4

ENRON SCANDAL CASE PRINCIPLE IGNORED (3)
PERIOD? _____ BANKRUPT______

Answer 4

Ethical Behavior Is Doing the Right Thing:
Efficient Capital Markets:
Risk-Return Trade-Off:
PERIOD EARLY 2000, BANKRUPT DEC 2001

Question 5

AIG PERIOD, FORMED _____, INVESTIGATE ______, BAILOUT _______

Answer 5

AIG PERIOD FORMED 1919, INVESTIGATE 2004, GOVERNMENT BAILOUT 2008