FINA 410 Section AA Investment Analysis (BMC Quiz)

MCQ FINA 410_Section AA Investment Analysis BMC Quiz

1. GDP per capita is a measure of prosperity because it divides the total GDP of a country by its population. Which of the below forecasts for a country would result in the highest GDP per capita growth?
2. Which of the following qualities of economic indicators do investors prize the most?
3. Which of the following economic indicators is most directly linked to the average person’s cost of living?
4. What is the main reason that investment banks create estimates of economic indicators?
5. Which of the following is the biggest disadvantage of economic indicators?
6. What does the Big Mac index show?
7. What is the most common measure central banks seek to target directly?
8. Why are equities volatile?
9. If the below companies are otherwise identical, which one would you invest in?
10. If the below companies are otherwise identical, which one would you invest in?
11. Which of the following statement is true, regarding the release of earnings announcements, and the release of economic indicators?
12. When an analyst is looking at a company for the first time, which of the following four activities does he do first?
13. A company does a 5-for-1 stock split and then it does a 1-for-25 reverse stock split. If nothing else changes, the market capitalization of the company:
14. What is the reason for discounting future cash flows as part of the intrinsic (absolute) valuation process?
15. A rise in which of the following inputs will increase an absolute (intrinsic) valuation?
16. What are the possible weaknesses of peer approach in relative valuation?
17. What may be the problem of comparing the P/E of a stock to the P/E of the overall market?
18. If the earnings per share of a company is $ 3.85 and the earnings yield is 1.5%, what is the price per share (pick the closest answer)?
19. In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP?
20. What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States respectively?
21. Which of the following US economic indicators is only available on a quarterly basis?
22. Which of the following is an example of a successful peg (A currency peg is a policy in which a national government sets a specific fixed exchange rate for its currency with a foreign currency or a basket of currencies)?
23. Which of the following are short-term drivers of currency valuation?
24. A drop in which of the following measures would typically send a government bond price down?