Financialization of Housing
Financialization of Housing
Please write a short (limit 1000 words) essay on the United Nations Human Rights Council’s 2017 report on the financialization of housing (relevant links below). You may either agree or disagree with the report. Your grade should not depend on which side you take, just on how well argued your case is. Try to consider principles from this course about the functioning of financial markets, whose purposes they serve, and how they can solve fundamental economic problems, or, perversely, worsen them.
Essay on the financialization of housing – http://www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=21264&LangID=E Full report, plus additional languages available here – http://www.ohchr.org/EN/Issues/Housing/Pages/AnnualReports.aspx
Review criteria
less You may either agree or disagree with the report. Your grade should not depend on which side you take, just on how well argued your case is. Try to consider principles from this course about the functioning of financial markets, whose purposes they serve, and how they can solve fundamental economic problems, or, perversely, worsen them.
Sharing course objectives. In this module, you will learn the basics of financial markets, insurance, and CAPM (Capital Asset Pricing Model). This module serves as the foundation of this course.
Learning Objectives
Discuss the relevance of this course in everyday life and the importance of ethical judgements in finance.
Understand the main sources of risk a security is subject to, and the main methods used to evaluate risk of an entire portfolio.
Describe why an investment may be considered high risk, and the sources of the so called ‘disaster risk.’
List the key events in the history of insurance, and how insurance differs between the state and national level in the U.S.
Identify the qualitative differences between the normal and fat tail distributions, and give examples of risk pooling, moral hazard and selection bias.
Understand the principle of risk diversification.
Explain the Capital Asset Pricing Model (CAPM), and the role of short-selling within the model.
Recall how to compute optimal risk-return portfolios.
Understand the concept of efficient frontier in portfolio management.