Bloomberg Market Concepts Exam
A rise in which of the following inputs will increase an absolute valuation? - THE
CORRECT ASNWER IS Earnings estimates
A rise in which of the following measures would typically send a government bond price
up? - THE CORRECT ASNWER IS Creditworthiness
A wedding planning company has a high fixed-cost base and a lot of debt. Who would
you rather be? - THE CORRECT ASNWER IS A shareholder in a booming economy.
According to the Big Mac index screen, which of the following four countries' currency is
the most undervalued? - THE CORRECT ASNWER IS China
According to the Big Mac index screen, which of the following four countries' currency is
the most undervalued? (D) - THE CORRECT ASNWER IS a)United States
b)Thailand
c)Brazil
d)China
According to the table, who owns approximately 1.3% of actively trades US debt? (D) -
THE CORRECT ASNWER IS a) Canada
b) Russia
c) India
d) Taiwan
Allison lives in America and has just retired. It is early 2016..... - THE CORRECT
ASNWER IS Norway
As a general rule, what percentage of debt to GDP will make a government's bond
yields spike? - THE CORRECT ASNWER IS There is no general rule
Assuming that an investor in the S&P 500 reinvests his dividends. According to the
chart,..... - THE CORRECT ASNWER IS 200%
At its peak at the end of 1999, Microsoft has a market cap of $600B. PC sales were
booming and most PCs ran on Microsoft software..... - THE CORRECT ASNWER IS
The decline in P/E ratio more than offset earning growth and this pushed the market cap
down
By what mechanism do interest rates affect currency values? - THE CORRECT
ASNWER IS Global investors are attracted by higher bond yields in high interest rate
countries.
, By what mechanism do interest rates affect currency values? (C) - THE CORRECT
ASNWER IS a)High interest rates slow an economy and make it less attractive to
investors
b)Changes in interest rates directly influence the value at which a currency is pegged
c)Global investors are attracted by higher bond yields in high interest rate countries
d)High interest rates make the currency safer
Company X was expected to have earnings per share of $0.52 for the upcoming
quarter. On the day of the results, the company reported earnings per share of $0.83.
What happened to the share price when the stock market opened? - THE CORRECT
ASNWER IS There is not enough information to tell.
Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in
consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing
else has changed, what happened to GDP? - THE CORRECT ASNWER IS It went
down
Engines 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? - THE CORRECT ASNWER IS A comparison of
the commercial prospects of new aircraft models
Here is a breakdown of post-it note inventor 3M's revenue by industry. Which of the
following industry drivers.... - THE CORRECT ASNWER IS The change in postal
Volumes
Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - THE CORRECT ASNWER IS 260
Here is a chart from the ILBE function displaying US 10-year inflation expectations as of
early 2017.... - THE CORRECT ASNWER IS 0.0239% above
Here is a chart of the index value for the S&P 500 and the United Kingdom's main
equity index the FTSE 100, from the end of 2008 to early 2015..... - THE CORRECT
ASNWER IS The S&P 500
Here is a chart of the Nasdaq Composite, the world's main technology index. It peaked
in the dotcom bubble on March 10, 2000. The P/E.... - THE CORRECT ASNWER IS
Earnings grew substantially, meaning that the P/E ratio in early 2015 was only around
30.3x
Here is a chart showing both nominal GDP growth and real GDP growth for a country.
Which of the following can be a true statement at the time the chart was captured? -
A rise in which of the following inputs will increase an absolute valuation? - THE
CORRECT ASNWER IS Earnings estimates
A rise in which of the following measures would typically send a government bond price
up? - THE CORRECT ASNWER IS Creditworthiness
A wedding planning company has a high fixed-cost base and a lot of debt. Who would
you rather be? - THE CORRECT ASNWER IS A shareholder in a booming economy.
According to the Big Mac index screen, which of the following four countries' currency is
the most undervalued? - THE CORRECT ASNWER IS China
According to the Big Mac index screen, which of the following four countries' currency is
the most undervalued? (D) - THE CORRECT ASNWER IS a)United States
b)Thailand
c)Brazil
d)China
According to the table, who owns approximately 1.3% of actively trades US debt? (D) -
THE CORRECT ASNWER IS a) Canada
b) Russia
c) India
d) Taiwan
Allison lives in America and has just retired. It is early 2016..... - THE CORRECT
ASNWER IS Norway
As a general rule, what percentage of debt to GDP will make a government's bond
yields spike? - THE CORRECT ASNWER IS There is no general rule
Assuming that an investor in the S&P 500 reinvests his dividends. According to the
chart,..... - THE CORRECT ASNWER IS 200%
At its peak at the end of 1999, Microsoft has a market cap of $600B. PC sales were
booming and most PCs ran on Microsoft software..... - THE CORRECT ASNWER IS
The decline in P/E ratio more than offset earning growth and this pushed the market cap
down
By what mechanism do interest rates affect currency values? - THE CORRECT
ASNWER IS Global investors are attracted by higher bond yields in high interest rate
countries.
, By what mechanism do interest rates affect currency values? (C) - THE CORRECT
ASNWER IS a)High interest rates slow an economy and make it less attractive to
investors
b)Changes in interest rates directly influence the value at which a currency is pegged
c)Global investors are attracted by higher bond yields in high interest rate countries
d)High interest rates make the currency safer
Company X was expected to have earnings per share of $0.52 for the upcoming
quarter. On the day of the results, the company reported earnings per share of $0.83.
What happened to the share price when the stock market opened? - THE CORRECT
ASNWER IS There is not enough information to tell.
Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in
consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing
else has changed, what happened to GDP? - THE CORRECT ASNWER IS It went
down
Engines 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? - THE CORRECT ASNWER IS A comparison of
the commercial prospects of new aircraft models
Here is a breakdown of post-it note inventor 3M's revenue by industry. Which of the
following industry drivers.... - THE CORRECT ASNWER IS The change in postal
Volumes
Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - THE CORRECT ASNWER IS 260
Here is a chart from the ILBE function displaying US 10-year inflation expectations as of
early 2017.... - THE CORRECT ASNWER IS 0.0239% above
Here is a chart of the index value for the S&P 500 and the United Kingdom's main
equity index the FTSE 100, from the end of 2008 to early 2015..... - THE CORRECT
ASNWER IS The S&P 500
Here is a chart of the Nasdaq Composite, the world's main technology index. It peaked
in the dotcom bubble on March 10, 2000. The P/E.... - THE CORRECT ASNWER IS
Earnings grew substantially, meaning that the P/E ratio in early 2015 was only around
30.3x
Here is a chart showing both nominal GDP growth and real GDP growth for a country.
Which of the following can be a true statement at the time the chart was captured? -
