BMC bloomberg market concepts Updated Version Questions and Correct Answers $50.00 - Correct AnswerIf the earnings per share of a company is $1 and the earnings yield is 2%, What is the price per share?
$100 million - Correct AnswerWidget Co has a market capitalization of $100 million. it does a 10-for-1 stock split. it then does a 1-for-16 reverse stock split. Finally, it does a 35-for-1 stock split. Nothing else changes. what's the new market cap?
2% - Correct AnswerWhat is the most common target inflation rate for an advanced economy?
A 4% annual yield on a credit risk-free 10-year government bond from the mythical country of Utopia. - Correct AnswerWhich would you prefer
A 5% annual yield on an investment in 10-year U.S. government bonds - Correct AnswerWhich would you prefer?
A comparison of the commercial prospects of new aircraft models - Correct AnswerEngines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the following would likely be the best theme for a Rolls-Royce analyst research note to help a portfolio manager decide between investing in Rolls-Royce or United Technologies?
A fishery exceeding fishing quotas - Correct AnswerWhich of the following assigns the same relative weightings to short-term and long-term outcomes as the absolute valuation process?
A house - Correct AnswerThe purchase of which of the following products is most affected by interest rates?
A shareholder in a booming economy. - Correct AnswerA wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be?
A stock's P/E ratio can remain above or below market average for extended periods. - Correct AnswerWhat may be a problem of comparing the P/E of a stock to the P/E of the overall market?
A surprise change in inflation expectations - Correct AnswerWhich driver weakened the Swiss franc?
A tendency to expand the borrowing capacity of the company. - Correct AnswerWhat impact will a tightening of the corporate spread most likely have on a company?
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An inverted yield curve meCorrect Answerthat bond traders are predicting interest rate cuts, and interest rate cuts happen in response to a recession. - Correct AnswerWhy does the yield curve tend to invert shortly before a recession?
An investor who is about to buy bonds. - Correct AnswerWhich one of the following actors benefits when interest rates go up?
an IPO crystallizes the value of the manager-owners stake. - Correct AnswerWhy do company manager-owners smile when they ring the stock exchange bell at their IPO?
Because GDP statistics are released well after other economic indicators. - Correct AnswerWhy is the release of GDP statistics less interesting to investors than the release of other economic indicators?
because it has the right to tax the wealthiest population on earth. - Correct AnswerWhy does the United States have a strong reputation for creditworthiness.
Because the repayment amounts and timings are fixed for ordinary bonds. - Correct AnswerWhy is fixed income called fixed income?
Both are estimated in advance by analysts. - Correct AnswerWhat does the release of earnings announcements have in common with the release of economic indicators?
Both countries are highly creditworthy. - Correct AnswerWhat is true of both the U.K.and the U.S.?
by comparing the yields of single bonds - Correct AnswerHow do investors compare bonds?
By compensating investors for inflation - Correct AnswerInvestors who fear rising inflation may buy Treasury Inflation Protected Securities (TIPS). How do TIPS shield lenders from inflation?
By locking in forward rates for known foreign payments. - Correct AnswerWhich of the following options is the best way for investors to manage currency risk?
C= Consumer spending I = Investment (Gross Fixed Capital Formation) G= Government Spending X= Exports M= Imports - Correct Answerwhat is the meaning of each letter in the GDP formula,
C+I+G+(X-M).
Central bank interest rates - Correct AnswerWhat is the primary driver of the left-hand end of the yield curve?
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