100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
CMSA (EQUITY MARKET FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ $10.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. CMSA
  4.  
  5. CMSA

Exam (elaborations)

CMSA (EQUITY MARKET FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
 5 views  0 purchase
  • Course
  • CMSA
  • Institution
  • CMSA

CMSA (EQUITY MARKET FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ What are the different types of asset classes from least risky to most? 1. Cash & Cash Equivalents 2. Fixed Income (Preferred Stock, Private Debt) 3. Equities 4. Alternative Investments...

[Show more]

Preview 3 out of 18  pages

Document information

  • September 28, 2024
  • 18
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • cmsa equity market fundamentals exam questions a

Written for

  • CMSA
All documents for this subject (35)

Seller

avatar-seller
NurseAdvocate

Reviews received

Content preview

CMSA (EQUITY MARKET FUNDAMENTALS) EXAM

QUESTIONS AND ANSWERS WITH COMPLETE

SOLUTIONS VERIFIED GRADED A++



What are the different types of asset classes from least risky to most?

1. Cash & Cash Equivalents

2. Fixed Income (Preferred Stock, Private Debt)

3. Equities

4. Alternative Investments (Real Estate, Commodities)

Define Beta

Beta is the correlation of an asset's return profile relative to the markets returns; This

shows systematic risk and can't be reduced through diversification.

Define Levered Beta

Measured the systematic risk of a stock compared to the overall market while

accounting for the companies capital structure. AKA Equity Beta

Define Unlevered Beta

Measures the systematic risk of a company's assets without considering the effect of

the companies debt. Assumes the company is fully equity financed. AKA Asset Beta

Measures of Beta

,B>1 More volatile than the market (Tech Company)

B=1 Correlated with the market (Index Fund)

B=0 Uncorrelated with the market ($20 Bill)

0<B<1 Less Volatile than the market (Utility Company)

B<0 Negatively correlated with the market (Gold)

Define Adjusted Beta

A measure of a stocks risk that modifies the historical beta to reflect a tendency to move

towards the market beta of 1 over time

What is the Capital Stack?

List of corporate securities from least to most risky

1. Seinor Debt

2. Subordinated Debt

3. Hybrid (Dent with Warrants or Options)

4. Equity

4.a Shareholder Loans

4.b Preferred Shares

4.c Common Shares

Types of preferred stock

Convertible Preferred Stock - Option to convert to common shares



Cumulative Preferred Stock - Unpaid dividends are added to the next divided

, Participating Preferred Stock - Additional participation in the upside of the companies

earnings or liquidation proceeds beyond the fixed dividend.

Different types of Private Equity?

1. Private Equity Firms

2. Venture Capital Firms

3. Distressed Capital Firms

4. Private Real Estate Firms

What is the difference between Public Equity and Private Equity?

Public equity has higher liquidity

Private equity has lower liquidity



This means private equity has a higher expected return

What are the types of equity's?

1. Sectors of Industries (Financials; Materials; Gaming)

2. Equity Size (Small cap; Mid Cap; Large cap; Mega cap)

3. Type of Security ( Common, Preferred, Convertible)

4. Cyclicality (Cyclical, Defense, non-cyclical)

5. Investor Type (Growth, Value, Income)

6. Individual/Fund (Individual companies; ETF's; Mutual Funds)

Define Follow-On Offering

The issuance of additional shares by a company that is already publicly traded.

- Also known as a Secondary Offering

- Raises additional capital for the company

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseAdvocate. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67163 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.99
  • (0)
  Add to cart