Bloomberg M arket Concepts: Equities and Economic Indicators ||100% correct answers latest (2024||2025) 1.How do companies usually list on the stock exchange? Through Initial Public Offerings (IPOs) . Correct answer 2. What makes the stock market more appealing than the bond market for some investors? The opportunity to earn a huge return . Correct answer 3. Based on the attached SPX GICS Sector tab le from the WEI function below, which sector contributed the largest daily decrease to the SPX Index at this time? Information Technology . Correct answer 4. Based on the MOV screenshot taken on 7/19/2023 which stock is contributing the most to the SPX index? CRM . Correct answer 5. Considering the details on company listings, which of the following is NOT a valid reason for a company to delist from a stock exchange? the company's owners wish to pursue other business interests . Correct answer 6. What is the significance of the financial leverage Jenny benefited fro m in her house purchase? It amplified the impact of her income changes on her discretionary income . Correct answer 7. What happens to the residual cash flows for equity holders if a company's revenue decreases but its fixed costs remain the same? The residual cash flows for equity holders decrease . Correct answ er 8. What is the best -case scenario for a bond investor who holds a bond to maturity? They receive their original investment back plus an amount equal to the yield each year . Correct answer 9. A person who is risk -averse is more likely to invest in Bonds, because they offer known fixed repayments . Correct answer 10. Based on the two TRA screenshots below, what can we infer about he effects of additional returns from reinvesting dividends in the INDU versus the CCMP indices over this 5 -year period? Reinvesting Dividends have a much greater effect in the INDU index because it is composed of much higher dividend paying stocks than the CCMP index. Correct answer 11. Based on the WCRS screenshot below, if at the end of 2013 you had investe d an equal weighted portion of $100,000 in NVIDIA and nine other companies that went bankrupt, how would your performance compare to the SPX return at this time, and what does this imply about the nature of stock market returns? You would have outperformed the SPX by over 1000%. This demonstrates the positive asymmetry of stock market returns . Correct answer 12. How does the potential for losses in bond investments differ from that of equity investments in the event of a company's bankruptcy? Equity holders usually lose more a s bond holders have more rights to collateral . Correct answer 13. Assume expected inflation is 4% per year. Which company would give you the highest expected return? Company C's stock price is expected to rise 8% per year plus the rate of inflation while not paying any divide nd. Correct answer 14. If a company goes bankrupt, how does the recovery process typically differ between bondholders and equity holders, and what impact does this have on their respective investment risks? Bondholders have first claim on assets, reducing their investment ris k compared to equity holders. Correct answer 15. What does the release of earnings announcements have in common with the release of economic indicators? Both are scheduled in advance . Correct answer 16. How might the Efficient Market Hypothesis (EMH) explain the immediate fluctuation of a company's stock price following an earnings report release? EMH suggests that the stock price should only respond to the earnings report if it contains unexpected inform ation . Correct answer 17. Based on the SPLC screenshot what can we imply about Apple's supply chain risk factors? Apple's concentrated supply reliance on Hon Hai Precision is its largest supply chain risk factor. Correct answer 18. Based on the attached article, what could be inferred about the impact of stock price changes on Apple's buyback strategy? Higher stock prices in 3Q could have resulted in fewer buybacks, hence the slight disappointment . Correct answer 19. When conducting financial analysis for a fertilizer manufacturing company, which socio -economic trend should be factored into your financial model? Shifts in demographics and dietary preferences in emerging markets can lead to an increased demand for meat, which subsequently increased demand for animal feed and fertilizers . Correct answer
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