1.Some investors believe that most of the governments love inflation. Do you agree? 2. What is the difference between asset allocation and security selection? 3. What are agency problems? What are some approaches to solving them? 4. Wall Street firms have traditionally compensated their traders with a share of the tradin profits that they generated. How might this practice have affected traders' willingness to assume risk? What is the agency problem this practice engendered? 5. A security makes monthly payment of $50 for 5years. The monthly payment is expect grow at 1%. What should be the return if it is sold at $2,000? 6. Current stock price of Google is $1,000. The market expects the price will be $1,700 years. What should be the return over the next two years if return is continuously compo 7