Bubble burst, Business Economics

Assignment Help:

  Situation: Only a few astute operatives say the crash in real estate prices as the USA entered the summer of 2007.  You were one of the few that appreciated that real estate prices were a greed and government driven "bubble". Your hedge fund has $10,000,000.00 set aside to profit from such institutions and you have been assigned to the project of designing and executing a strategy to profit from the inevitable "burst of the bubble" that was to come [It in fact occurred during July, 2007 and in retrospect we can see that the "bubble burst" right after the 4th of July Holiday].

Assignment:

Design and explain a strategy to profit from the drop in home and mortgage values. For purposes of this assignment assume that the total drop in prices and values in the real estate industry was 30% from July, 2007 and July, 2008 and an additional 15% from July 2008 to July 2009. Also assume: [1] You design and implement your strategy on May 1, 2007;  Your fund investors wanted to be exposed to any position for no more than 18 months; [2] You will be fully invested in the project.


Related Discussions:- Bubble burst

Ppc, rice donation

rice donation

What is the lewis model, What is the Lewis Model? The Lewis Model argue...

What is the Lewis Model? The Lewis Model argues economic growth needs structural change into the economy whereby surplus labour within traditional agricultural sector along wit

Terms of trade deteriorating in less developed countries, Why are the terms...

Why are the terms of trade deteriorating for Less Developed Countries? Problem: The substantial decline within real commodity prices and the deterioration into the terms of

Does the structure of the population issue, Does the structure of the popul...

Does the structure of the population issue? Dependents into an economy, children as well as old people are assists by the economically active. Dependency ratio uses to measure

Explain the theories of convergence, (a) Name three types of government int...

(a) Name three types of government interventions and 3 economic factors affecting the business environment and with given example explain how these affect the business environment.

Importance of non profit organisations, (a) Show the importance of Non Pro...

(a) Show the importance of Non Profit Organisations in Small Island Economies. (b) Show the importance of Foreign Direct Investment in Small Island Economies. Comment on th

Determine that will there be a positive demand for shares, Consider the eco...

Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4)        for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).

Producing the standard level products, Provisionally the new software is ca...

Provisionally the new software is called SafeCus with two projected levels of service - Premier and Standard. The Premier Level could be on sale within a year and will provide b

How does economic system influence the development process, How does econom...

How does economic system influence the development process? The development experience of free market or capitalist and command as socialist/communist countries is extremely d

Net exports, Net exports normally decrease with the effect when aggregate o...

Net exports normally decrease with the effect when aggregate output decline. When a concretionary fiscal policy is implemented net exports will go up . When government maintain the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd