Bloomberg Answers NEW

Bloomberg Answers 8NQZRLYVD3 The Primacy of GDP Knowledge Check 1  Inaccurately because the scope of GDP measurements can change. Knowledge Check 2  It went down. Knowledge Check 3  Sweden performed beter. Knowledge Check 4  Consumer spending accounts for two-thirds of the U.S. economy. When the number of unemployed consumers rises, there is less consumer spending. SECTION QUIZ 1. 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 tme the chart was captured? a. The country has deflaton. The botom line is nominal growth and the top line is real growth. 2. Which of the following lines is the best leading economic factor? a. PMI 3. The “misery index” is ofen cited in the media as a way to measure consumer pain. It is defned as the inflaton rate plus the unemployment rate. Review and identfy the country with the highest “misery index.” a. Argentna 4. What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States? a. Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the housing starts goes DOWN. Monitoring GDP SECTION QUIZ 1. Which of the following qualites of economic indicators do investors prize the most? a. Timeliness of release. 2. Why is the release of GDP statstcs less interestng to investors than the release of other economic indicators? a. Because GDP statstcs are released well afer other economic indicators. 3. Which of the following important U.S. economic indicators is only available on a quarterly basis? a. GDP 4. Which economic indicator is most directly linked to unemployment? a. Nonfarm payrolls. Forecastng GDP Knowledge Check 1  Above Expectatons Knowledge Check 2 This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseH Deceleraton Knowledge Check 3  Minimal Change SECTION QUIZ 1. These charts show data for four countries as of early 2016. For each country, the purple line denotes historic real GDP growth. The white line denotes the consensus estmated real GDP growth. The red line denotes the most pessimistc analyst forecast. The green line denotes the most optmistc analyst forecast. For which country is there the most controversy among the analyst community about 2016 growth? a. RUSSIA 2. What is the main reason that investment banks create estmates of economic indicators? a. To know when specifc economic data points are a positve or negatve surprise. 3. Which of the following is the biggest pitall of economic indicators? a. They do not consistently presage turning points. 4. Here is a chart displaying estmates of the inital jobless claims indicator, one of the main unemployment statstcs in the U.S. It measures the number of new applicants for unemployment benefts. What was the level of the analyst with the most optmistc outlook? a. 260 Currency Market Mechanics Knowledge Check 1  JAPAN Knowledge Check 2  Both countries had large dollar-denominated debts. Knowledge Check 3  107.89 SECTION QUIZ 1. Allison lives in America and has just retred. It is early 2016. She has long had dreams of cruising the fords on the west coast of Norway, visitng Buckingham Palace in the United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel Tower in France. She last considered all four optons on New Year’s Day 2008. She would like to select the trip to go on based on which country’s currency has subsequently weakened the most against the U.S. dollar. Where should she go on vacaton? a. NORWAY 2. Review the currency pair charts for the Barbadian dollar against the Jamaican dollar, the Czech koruna against the Polish zloty, the Nigerian naira against the Ghanaian cedi, and the Hong Kong dollar against the Macanese pataca. Which pair is pegged. a. The Hong Kong dollar against the Macanese pataca 3. Which of the following is NOT an example of a failed peg? a. Hong Kong dollar against the U.S. dollar in 1997. 4. Use the chart below to answer the queston. How many Danish crowns (DKK) will buy 100 Japanese yet (JPY)? a. 5.360 This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseHCurrency Valuaton Knowledge Check 1  China Knowledge Check 2  The currency strengthens Knowledge Check 3  A surprise change in inflaton expectatons SECTION QUIZ 1. What does the Big Mac index show? a. How currencies may be overvalued or undervalued 2. Which of the following are short-term drivers of currency valuaton? a. Surprise changes in interest rates, inflaton, and trade 3. By what mechanism do interest rates affect currency values? a. Global investors are atracted by higher bond yields in high interest rate countries 4. Which of these headlines could move a currency pair? a. U.S. Stocks Rally on Fed’s Surprise Reducton of the Interest Rate Central Banks and Currencies SECTION QUIZ 1. What is the most common target inflaton rate for an advanced economy? a. 2% 2. What was the primary goal of Abenomics? a. To halt the vicious cycle of deflaton 3. Here is the deflatonary cycle. What steps connect the lower lef gray arrow to the upper right blue arrow? a. Prices Decline 4. Were the two oil crises in the 1970s linked to deflaton or inflaton? a. Inflaton Currency Risk Knowledge Check 1  They are probably heavy exporters Knowledge Check 2  Indonesia Knowledge Check 3  126 Knowledge Check 4  40 yen Knowledge Check 5  EUR 4,717 more SECTION QUIZ 1. Why would Jack Welch suggest putng all company plants on barges? a. To respond quickly to changes in the currency markets This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseH2. Samsung is based in South Korea and reports in South Korean won. Samsung sells its products around the world and the geographic breakdown of its 2015 revenues is in the frst chart. The other charts show how some major world currencies moved against the South Korean won through the course of 2015. Of the currencies shown, which currency movement boosted Samsung’s revenue growth the most? a. DOLLAR 3. Legendary investor Warren Buffet said, “Gold gets dug out of the ground… Then we melt it down, dig another hole, bury it again, and pay people to stand around guarding it. It has no utlity. Anyone watching from Mars would be scratching their head.” Based on this quotaton, what quality of gold is he referring to? a. Its storage costs 4. Which of the following optons is the best way for investors to manage currency risk? a. By locking in forward rates for known foreign payments The Roots of the Bond Market Knowledge Check 1  Surplus Knowledge Check 2  Taiwan Knowledge Check 3  U.S. Government Bonds are considered low risk Knowledge Check 4  Because the repayment amounts and tmings are fxed for ordinary bonds SECTION QUIZ 1. Why does the United States have a strong reputaton for creditworthiness? a. Because it has the right to tax the wealthiest populaton on earth. 2. What is one reason why foreign governments lend to the U.S. government? a. To build liquid FX reserves. 3. What does one yellow bar depict in this debt distributon diagram? a. Coupon Repayment 4. Which one of the following actors benefts when interest rates go up? a. An investor who is about to buy bonds. Bond Valuaton Knowledge Check 1  Investors do not alter the calculaton. Knowledge Check 2  There is no general rule. Knowledge Check 3  Both countries are highly creditworthy. Knowledge Check 4  A 4% annual yield on a credit risk-free 10-year government bond from the mythical country of Utopia Knowledge Check 5  A 5% annual yield on an investment in 10-year U.S. government bonds. This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseHSECTION QUIZ 1. What is the primary reason for U.S. government bond yield to ripple through the bond market? a. The large government bond market competes for investors’ atenton via yields. 2. A rise in which of the following measures would typically send a government bond price up? a. Creditworthiness. 3. Which of the countries shown makes the greatest relatve use of short-term government fnancing? a. Norway. 4. How do investors compare bonds? a. By comparing the yields of single bonds. Central Bankers and Interest Rates Knowledge Check 1  Wartme actvites Knowledge Check 2  3% SECTION QUIZ 1. Here is a chart from the ILBE functon displaying U.S. 10-year inflaton expectatons as of early 2017. At the point in tme shown, where is the country’s 10-year inflaton expectaton in relaton to the Central Bank’s inflaton target? a. 0.0239% above 2. Investors who fear rising inflaton may buy Treasury Inflaton Protected Securites (TIPS). How od TIPS shield lenders from inflaton? a. By compensatng investors for inflaton. 3. What is the Federal Reserve’s favorite inflaton gauge? a. Core PCE 4. Here is the output gap in the U.S. in early 1975. What was likely the Fed interest rate policy? a. To cut interest rates. The Yield Curve and Why It Maters Knowledge Check 1  To compensate lenders for the greater risk of long-term loans compared to short-term loans. Knowledge Check 2  Corporate bond issuers go bankrupt more frequently than governments, as they do not have a tax base to fall back on in hard tmes. SECTION QUIZ 1. What impact will a tghtening of the corporate spread most likely have on a company? a. A tendency to expand the borrowing capacity of the company. 2. What are the three main transmission mechanisms by which the yield curve affects the economy? a. Corporate impact, global impact, consumer impact. 3. What is the 10-year to 3-month term premium of the following yield curve? This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseH. 2.398% 4. The purchase of which of the following products is most affected by interest rates? a. A house. Movements in the Yield Curve SECTION QUIZ 1. What is the primary driver of the lef-hand end of the yield curve? a. Central bank interest rates. 2. Which yield curve is most likely linked to a booming economy? a. B 3. The two yield curve in the chart are from September 10, 2001 and from October 10, 2001. What do you think the Federal Reserve did with interest rates in the month following the atacks of September 11, 2001? a. Cut interest rates. 4. Why does the yield curve tend to invert shortly before a recession? a. An inverted yield curve means that bond traders are predictng interest rate cuts, and interest rate cuts happen in response to a recession. Introducing the Stock Market Knowledge Check 1  IPOs incentvize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetze their work. SECTION QUIZ 1. Why do company manager-owners smile when they ring the stock exchange bell at their IPO? a. An IPO crystallizes the value of the manager-owners’ stake 2. The Dow Jones Industrial Average Index has an unusual weightng methodology. Unlike the S & P 500, it is weighted by share price. Here are 22 of the 30 members of the Dow Jones as of mid-June 2015. If all the shares went up by 5%, which share on the screen shown would have the biggest contributon to an upward movement in the index? a. Goldman Sachs 3. In 1999, James Glassman and Kevin Hasset published a book called “Dow 36,000.” At the tme, the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a potental substtute for the book ttle? a. “The Sum of the Share Prices of All 30 Dow Jones Members Will Triple.” 4. 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 labels have been removed. One index has clearly outperformed the other. Over this period, there was a technology boom and an oil crash. Here are pie charts showing the early 2015 index compositons by industry for both the S&P 500 and the FTSE 100. Which index outperformed? a. The S&P 500 Index. The Nature of Equites Knowledge Check 1  Her mortgage payments and necessites are fxed. Knowledge Check 2  A shareholder in a booming economy This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseHKnowledge Check 3  170% Knowledge Check 4  200% SECTION QUIZ 1. Why are equites volatle? a. Due to the residual nature of earnings. 2. Which of the following statements is true? a. When you buy an equity, the most you can lose is 100% and your potental gain is unlimited. 3. In the example highlightng the differences between bond holders and shareholders, we equated surgeon Jenny to a shareholder. Which row of the budget planning table shows the amount to which she as a shareholder would be enttled? a. D. 4. You but the stock of four consumer goods companies at the end of 2004 and hold them untl August 2010. Here are the TRA (Total Return) charts from Bloomberg for all four stocks. The “Buy Price” in the top lef-hand corner is the price you paid for each stock. The price of the stock in August 2010 is noted in the chart’s legend. The legend also states the Dividend Adjusted Value in 2010, which is the value of the stock including reinvested dividends over the holding period. For which stock did the bulk of the total return come from dividends? a. Procter & Gamble. Equity Research Knowledge Check 1  Both are estmated in advance by analysts. Knowledge Check 2  United Contnental Knowledge Check 3  MTU Aero Engines Knowledge Check 4  A comparison of the commercial prospect of new aircraf models. Knowledge Check 5  Median age of society Knowledge Check 6  China’s Aluminum Demand Weathers Real-Estate Slowdown So Far SECTION QUIZ 1. When an analyst is looking at a company for the frst tme, which of the following four actvites does he do frst? a. Defnes the industry or industries in which the company operates. 2. Here is a table from the Bloomberg Intelligence copper dashboard which shows the different end-users of the “red metal.” Which of the following Bloomberg headlines would likely be of most interest to a copper trader? a. China’s Constructon Slowdown Dents Copper Consumpton, Prices This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseH3. Here is a breakdown of post-it note inventor 3M’s revenue by industry. Which of the following industry drivers should be of most interest to a prospectve investor of 3M? a. The change in postal volumes. 4. 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? a. There is not enough informaton to tell. Absolute Valuaton Knowledge Check 1  Coca-Cola because it has a higher market capitalizaton Knowledge Check 2  $100M Knowledge Check 3  Short-term forecasts Knowledge Check 4  Making the assumptons upon which to project future performance. Knowledge Check 5  Future profts are uncertain Knowledge Check 6  It determines how risky a stock is in comparison to the overall stock market. Knowledge Check 7  $11 Knowledge Check 8  Enterprise Value = Market Cap – Cash + Debt SECTION QUIZ 1. Which of the following stocks is most sensitve to the movement of the overall stock market? a. Amazon 2. Which of the following assigns the same relatve weightngs to short-term and long-term outcomes as the absolute variaton process? a. A fshery exceeding fshing quotas. 3. Here is the WACC functon for U.S. drug company Pfzer. The WACC calculaton has been hidden. What is the WACC? a. 8.2% 4. A rise in which of the following inputs will increase an absolute variaton? a. Earnings Estmates Relatve Valuaton Knowledge Check 1  The cash flow from equites can contnue indefnitely while the cash flow from most bonds comes to an end. Knowledge Check 2  The decline in the P/E rato more than offset earnings growth and this pushed the market cap down. This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseHKnowledge Check 3  The estmated growth can be dramatcally wrong. Knowledge Check 4  A stock’s P/E rato can remain above or below market average for extended periods. SECTION QUIZ 1. 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 rato later peaked above 500. In hindsight, this is widely agreed to have been a bubble. In March 2015, the index value for the frst tme since then surpassed the peak. Why might some investors at that point have argued “this tme it’s different”? a. Earnings grew substantally, meaning that the P/E rato in early 2015 was only around 30.3x. 2. The World Equity Index functon shown contains two valuaton metrics for the S&P 500. The Nike descripton contains the same two valuaton metrics. How does Nike’s valuaton compare to that of the S&P 500? a. Nike is more expensive than the S&P 500 on both a P/E and dividend yield basis. 3. If the earnings per share of a company is $1 and the earnings yield is 2%, what is the price per share? a. $50.00 4. This chart shows a scaterplot with the x-axis being the estmated sales growth and the y-axis being the estmated P/E multple. Given this data alone, which of the following companies may warrant further analysis by a portolio manager looking to buy an insurance company for her portolio? a. Chubb. This study source was downloaded by from CourseH on :55:40 GMT -05:00 This study resource was shared via CourseH Powered by TCPDF ()