Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1. A top-down analysis of a firm's prospects starts with an analysis of the ____.
2. In 1980 the dollar-yen exchange rate was about $.0045. In 2012 the yen-dollar exchange
rate was about 80 yen per dollar. A Japanese producer would have had to increase the dollar price
of a good sold in the United States by approximately _____ to maintain the same yen price in
2012.
%Δ
3. An increase in the value of the yen against the U.S. dollar can cause the Japanese
automaker Toyota to either _____________ on its U.S. sales.
4. You estimate that the present value of a firm's cash flow is valued at $15 million. The
break up value of the firm if you were to sell the major assets and divisions separately would be
$20 million. This is an example of what Peter Lynch would call ___________.
5. Between 1999 and 2010, the purchasing power of the U.S. dollar increased relative to the
purchasing power of _______.
6. If you believe the economy is about to go into a recession, you might change your asset
allocation by selling _______ and buying ______.
7. The yield curve spread between the 10-year T-bond yield and the federal funds rate is a
_______ economic indicator.
8. The Conference Board's Consumer Confidence Index is released ______.
9. You can earn abnormal returns on your investments via macro forecasting ______.
10. Which of the following industries would most analysts classify as mature?
11. Which one of the following stocks represents industries with below-average sensitivity to
the state of the economy?
12. The most widely used monetary policy tool is _________.
13. Which one of the following is the ratio of actual output from factories to potential output
from factories?
14. According to __________ economists, the growth of the U.S. economy in the 1980s can be
attributed to lower marginal tax rates, which improved the incentives for people to work.
15. The market value of all goods and services produced during a given time period is called
______.
16. A big increase in government spending is an example of a _________.
17. GDP refers to _________.
18. Portfolio manager Peter Lynch would classify Coca-Cola as _________.
19. Attempting to forecast future earnings and dividends is consistent with which of the
following approaches to securities analysis?
20. The analysis of the determinants of firm value is called _____________.
21. Which of the following companies is the best example of a turnaround?
22. Inflation is caused by ________________.
23. Everything else equal, if you expect a larger interest rate increase than other market
participants, you should _________.
24. To obtain an approximate estimate of the real interest rate, one must _________ the
__________ the nominal risk-free rate.
25. Which of the following would
not
be considered a supply shock?
26. If economic conditions are such that very slow growth is expected in the foreseeable
future, one would want to invest in industries with __________ sensitivity to economic conditions.
27. Which of the following is
not
an example of fiscal policy?
28. Supply-side economics tends to focus on _______________.
29. Which one of the following describes the amount by which government spending exceeds
government revenues?
30. Which one of the following is probably the most direct and immediate way to stimulate or
slow the economy, although it is not very useful for fine-tuning economic performance?
31. In macroeconomic terms, an increase in the price of imported oil or a decrease in the
availability of oil is an example of a _________.
32. ______________ in interest rates are associated with stock market declines.
33. The average duration of unemployment is _________.
34. The ratio of the purchasing power of two economies is termed the _______.
35. Everything else equal, an increase in the government budget deficit would:
I. Increase the government's demand for funds
II. Shift the demand curve for funds to the left
III. Increase the interest rate in the economy
36. Which of the following affects a firm's sensitivity of its earnings to the business cycle?
I. Financial leverage
II. Operating leverage
III. Type of product
37. Which of the following describes the rate at which your ability to purchase grows while
you hold an interest-earning investment?
38. An example of a highly cyclical industry is the _________.
39. The stock price index and contracts and orders for nondefense capital goods are
_________.
40. Which one of the following is
not
a demand shock?
41. Which one of the following is
not
a U.S. supply shock?
42. Pharmaceuticals, food, and other necessities would be good performers during the ____
stage of the business cycle.
43. Capital goods industries such as industrial equipment, transportation, and construction
would be good investments during the _____ stage of the business cycle.
44. If you are going to earn abnormal returns based on your macroeconomic analysis, it will
most likely have to be because __________.
45. If the economy is going into a recession, a good industry to invest in would be the
__________ industry.
46. Members of the Board of Governors of the Federal Reserve System are appointed by
____________ to serve _____________ terms.
47. A firm in the early stages of its industry life cycle will likely have _________.
48. Which of the following describes the percentage of the total labor force that has yet to
find work?
