3. Translate the following passages into Chinese
(1) 精算师是分析风险所带来的经济后果的专业人士。精算师运用数学、统计以及金融理论来研究未来不确定的事件，特别是那些与保险和养老项目有关的事件。他们估算出这些事件发生的可能性，设计出有效的方法来减少这种可能性，以及减轻那些一定会发生的不利事件所带来的影响。精算师是雇用他们的公司管理团队的重要组成部分。精算师的工作要求具有强大的分析技能、业务知识、以及对人类行为的理解，进而设计出并管理可以控制风险的程序。 (2) 一般保险公司可以进一步分为以下两个子类：标准的保险公司与额外的保险公司。在美国，标准的保险公司是保险产业的主流，通常销售常见的保险产品，如汽车保险、房屋保险和商业保险等。额外的保险公司则以标准保险没有理赔的风险为主要业务。
Unit 17 Behavioral Finance
1. Answer the following questions based on the text
(1) Behavioral finance is a field of finance that proposes psychology-based theories to explain stock market anomalies. Behavioral finance experts think that the information structure and the characteristics of market participants systematically influence individual’s investment decisions as well as market outcomes. (2) Heuristic is a method of using experience and practical knowledge to solve a problem and rapidly come to a solution that is close to the best possible or optimal answer. An important example of heuristic is when trading floor economists and traders have to interpret incoming information rapidly. They have no choice, especially if, on a certain day, the U.S. and/or other countries may publish five or six critical economic indicators at the same time.
(3) Mental accounting theory purports that individuals divide their current and future assets into separate and non-transferable mental accounts and assign different levels of utility to each asset groups. The division will affect their consumption behaviors.
(4) Anchoring is used in psychology to describe the common human tendency to rely on knowledge that is rapidly available when making decisions. During normal decision making, individuals anchor on specific information or a specific value and then adjust to that value to account for other elements of the circumstance. Once the anchor is set, there is a bias toward that value.
(5) Holding the losers too long reflects that people have the aversion to recognizing bad deals and cutting losses. Investors are unwilling to recognize losses, but are more willing to recognize gains.
(6) Endowment effect is known as status quo bias, which means that most people would demand a higher price to sell a product than they would be willing to pay to buy it; but the standard economic theory means that a person’s willingness to pay for a good should be equal to their willingness to accept compensation to be deprived of the good.
(7) Due to loss aversion, people strongly prefer avoiding losses than acquiring gains. Some studies suggest that losses are twice as powerful and psychological as gains. 2. Translate the following passages into English
(1) Richard H. Thaler thinks that behavioral finance is no longer a controversial topic because financial economists have taken human behaviors into account when they study stock prices. Thus, when we look back, the discussion of behavioral finance over a decade ago was really a fuss. It is predicted that in the near future the term “behavioral finance” will be considered a cumbersome expression, as economists all take “behaviors” into the models when they observe the real world; otherwise, it will be irrational.
(2) Economists often use “herding effect” to describe the economic psychology that individuals follow the trend. In capital markets, “herding effect” means that one single investor acts according to other similar investors’ actions in an investment group. He or she will buy when others buy, and sell when others sell. Herding effect is a strange phenomenon in securities markets, having a great influence on the stability and efficiency of the market. 3. Translate the following passages into Chinese
(1) 从历史上来看，在美国和其他地方的股权溢价一直很高。例如，投资1美元在1926年1月1日的美国国债，现在的价值是14美元；投资1美元在同一天的大型美国股票，现在价值超过2000美元。尽管人们对股票的回报期望更高，因为股票比国库券的风险大，但是年77% 的收益差别太大了，以至于不能用风险单方面来解释。
(2) 有效市场假说被认为是现代金融理论的基础之一。由于假设证券的市场价格能反映所有发布的相关信息的影响，该假设没有解释非理性问题。行为金融学最著名的批判者是市场有效理论的创始人尤金·法玛。法玛教授认为，即使有一些不能被现代金融理论解释的异常现象，市场效率理论也不应该完全被摒弃而由行为金融学所取代。
Unit 18 Financial Ethics
1. Answer the following questions based on the text
(1) Ethics means well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or
specific virtues. Nothing can be accomplished without norms or standards. (2) Ethical dilemmas and ethical violations in finance can be attributed to an inconsistency in the conceptual framework of modern financial-economic theory and the widespread use of a principal-agent model of relationship in financial transactions.
(3) The most frequently occurring ethical violations in finance relate to insider trading, stakeholder interest versus stockholder interest, investment, and campaign financing.
(4) Most banks have set up their own codes of ethics or ethics of conduct, and some even conduct training programs on ethics. They ask their employees to adhere to laws and regulations. (5) It’s for students to discuss.
2. Translate the following passages into English
(1) The financial scandals of some U.S. companies have led to the emergence of a
new senior manager: chief ethical officer. That a senior manager is responsible for corporate ethics and compliance issues sounds like a good solution. However, the critics doubt whether a chief ethical officer can take the responsibility for cultivating corporate culture in accordance with ethics. Advocates believe that setting up the position of chief ethical officer in enterprises indicates that the enterprise has attached great importance to corporate ethics.
(2) The concepts of corporate social responsibility and stakeholders emerged in the
early 1900s in the United States. Corporate social responsibility means that not only should an enterprise make money and be responsible for shareholders’ interests, but also assume social responsibilities for its employees, society, and environment, particularly including compliance with business ethics, production safety, occupational health, protection of legitimate rights and interests of laborers, saving resources, etc. The main difference between stakeholder theory and the traditional theory of shareholder supremacy lies that the former thinks that no company can develop without the input or participation of various stakeholders, such as shareholders, creditors, employees, consumers, suppliers and so on. Enterprises should not only serve the interests of shareholders, but also protect the interests of other stakeholders.
3. Translate the following passages into Chinese
(1) 伦理道德困境和金融违法行为可以归因于现代金融经济理论概念框架与在金融交易中委托代理关系模型的广泛使用的不一致性。作为现代资本主义制度基础的金融经济理论是建立在理性最大化范例上的，它认为个人追求私利（利己）且人们在寻求自身利益最大化时是理性的。委托代理关系模型则是这样
一种安排，即一方作为另一方的代理，代表另一方执行特定的职能。这种安排是现代经济和金融体系的组成部分，并且很难想象没有它们该体系将如何运行。
(2) 伦理学不仅要和管理学一起学习，而且两者之间联系紧密。企业管理是关于做出正确决策的学科。那么两者之间的区别是什么呢？管理学关心的是决策如何影响公司，而伦理学关心的是决策如何影响一切事物。管理工作是在特定的公司情境中运行，而伦理是在世界这个大情境下运作。因此，管理学是伦理学的一部分。企业经理如果不懂管理学和一般伦理学，他就不能做出正确的决定。商业道德就是在现实世界中进行的管理学。这就是为什么企业经理应该学习伦理学。