1. What is the "agency" problem?

2. What is the relationship between financial decision making and risk and return?

3. Identify the primary characteristics and differences of each form of legal business organizations.

1. Sole Proprietorship
2. Partnerships
3. Corporation

4. Refer to videos and case study of Bernie Madoff.Should "sophisticated" investors who withdrew millions from their Madoff accounts forfeitgains to people who lost millions they invested?Why or why not?

5. Why does Ponzi schemes ultimately fail?

6. Your friend, John, believes that since capital markets are efficient, he doesn't need to read the financial press or be involved in stock research before purchasing stocks for his portfolio. He simply throws darts at the stock pages and buys the stocks the darts hit.

Is stock research and analysis important when buying and selling stocks in an efficient market?