Study guides, Class notes & Summaries

Why do traditional valuation models, like discounted cash flow, fail at capturing the full range of risks companies face today? Choose one. A. They do not consider compliance risk. B. They offer limited, deterministic and potentially misleading insights. C. They are outdated. D. They do not consider reputational risk. - answer-B. They offer limited, deterministic and potentially misleading insights. Explanation : Traditional valuation models. like discounted cash flow, do not take in...

Another term for bond market - answer-Fixed income What was the worth of the global bond market at the end of 2016 - answer-101 Trillion What was the worth of the global stock market at the end of 2016 - answer-65 Trillion Amount of government bonds in existence at the end of 2016 - answer-2.1 million How much of the 101 trillion of bonds does the U.S. account for? - answer-14 trillion Largest segment of world bond market - answer-Sovereign debt market A shortfall of tax revenu...

DES - answer-P/E Ratio, Market cap, revenue, earnings per share RV - answer-compare valuation to specific companies within industry COMP - answer-Stock performance comparison in graph; price change, total return; remember to change time frame WEI - answer-Global stocks; you can change currencies, time period WB - answer-Global bonds WCRS - answer-World Currencies CRR - answer-Commodities ECO - answer-Economic calendar ECST - answer-Economic statistics around the world, ch...

How can you view all research available for Apple? - answer-BRC <Go> On which function is it possible to view company earnings reports for a list of different securities to ensure that you can stay on top of earnings releases, shareholder meetings, and other significant corporate events? - answer-EVTS <Go> To load equity securities, you need an exchange code. How can you find more information on the exchange profiles? - answer-EPRX <Go> How can you keep up-to-date with...

Which of the following qualities of economic indicators do investors prize the most? - answer-timeliness of release Why is the release of GDP statistics less interesting to investors than the release of other economic indicators? - answer-because GPD statistics are released well after other economic indicators Which of the following important US economic indicators is only available on a quarterly basis? - answer-GDP Which economic indicator is most directly linked to unemployment? - an...

Corporate bond issuers go bankrupt more frequently than governments, as they do not have a tax base to fall back on in hard times - answer-Why did the corporate spread significantly widen during the 2008 market crash? what does it mean when a company's corporate spread tightens? - answer-the company's bonds are outperforming the benchmark yield what are the three main transmission mechanisms by which the yield curve affects the economy? - answer-corporate impact, global impact, consumer ...

Which Bloomberg Excel tool, wishing the Real-TIme/Historical wizard, would you select to download historical weekly close data on a rolling basis of a security - answer-Historical End of Day What function allows you to create custom news pages for the topics, regions and markets that are important to you? - answer-MYN <Go> Where can you find important contact information and support resources for Bloomberg in one place? - answer-<Cancel> key While on a function like WEI <...

How accurately do GDP portray the economy and why? - answer-Inaccurately because the scope of GDP measurements can change. Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption. Assuming nothing else has changed, what happened to GDP? - answer-It went down what is the meaning of each letter in the GDP formula, C+I+G+(X-M)....

A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the company would you rather be? - A shareholder in a booming economy A rise in which of the following inputs will increase an absolute valuation? - Earnings estimate Assume that an investor in the S&P 500 reinvests his dividends. According to the chart, what approximate return would this investor have reaped from the early 2009 trough to the endpoint of the chart? - 340% At its peak at the end of ...

How accurately do GDP statistics portray the economy and why? - Answer-Just because they are official and numerical does not mean they are accurate. The term "domestic" in GDP unambiguously links to a nation state. Why is economic data helpful in the investment process? - Answer-If an economy is doing well then certain companies will sell more of their product as household budgets also increase. What 5 data inputs matters most to investors? - Answer-Economic growth, inflation, unemploymen...