EQUITY INVESTMENTS FINAL PAPER EXAM QUESTIONS ACCURATE ANSWERS FULL
SOLUTION
Question:
A German publicly traded company, to raise new capital, gave its existing shareholders the
opportunity to subscribe for new shares. The existing shareholders could purchase two new shares at
a subscription price of €4.58 per share for every 15 shares held. Phân bi■t "Right offers" & "Private
placement".
Answer:
Right offers = phát hành quy■n mua cho c■ ■ông hi■n h■u Private placement = phát hành riêng
l■ cho c■ ■ông qualified ( có ti■n ho■c có knowledge) mà ko nh■t thi■t là ph■i c■ ■ông hi■n
h■u
Question:
In an underwritten offering, the risk that the entire issue may not be sold to the public at the
stipulated offering price is borne by the: D■ch " at the stipulated offering price" & "borne by".
Answer:
at the stipulated offering price = m■c giá xác ■■nh tr■■c borne by = ch■u trách nhi■m b■i
Question:
Well-functioning financial system là gì?
Answer:
Có 3 y■u t■: Operational Efficiency Informational Efficiency Allocational Efficiency
Question:
Market efficiency là gì?
Answer:
, Th■ tr■■ng hi■u qu■ là 1 th■ tr■■ng mà price ph■n ánh h■t các tin t■c quá kh■ và hi■n t■i,
và ph■n ■ng nhanh chóng v■i các tin t■c m■i trên th■ tr■■ng T■i ■ó Market value = instrinsic
value
Question:
Observed overreactions in markets can be explained by an investor's degree of:.
Answer:
"overreactions" = loss aversion
Question:
Risk aversion Loss aversion Là gì?
Answer:
Risk aversion (Ác c■m r■i ro) ko thích s■ ko ch■n ch■n Loss Aversion (Ác c■m v■ m■t mát)
thích ch■t non
Question:
With respect to rational and irrational investment decisions, the efficient market hypothesis requires:
A. Only that the market is rational B. That all investors make rational decisions C. That some
investors make irrational decisions.
Answer:
key word "requires" = nó h■i b■n ch■t th■ tr■■ng không ph■i miêu t■ m■y th■ khác Th■
tr■■ng hi■u qu■ ch■p nh■n có vài thành ph■n không ■■■c lý trí cho l■m, nh■ng outcomes
v■n là s■ ko lý trí t■o nên 1 th■ tr■■ng hi■u qu■ =))))
Question:
In an efficient market, fundamental analysis most likely requires that the analyst must: A.
Extrapolate historical data to estimate future values and take investment decisions. B. Do a superior
job of estimating the relevant variables and predict earnings surprises. C. Use trading rules for
detecting the price movements that lead to new equilibrium prices.
Answer:
SOLUTION
Question:
A German publicly traded company, to raise new capital, gave its existing shareholders the
opportunity to subscribe for new shares. The existing shareholders could purchase two new shares at
a subscription price of €4.58 per share for every 15 shares held. Phân bi■t "Right offers" & "Private
placement".
Answer:
Right offers = phát hành quy■n mua cho c■ ■ông hi■n h■u Private placement = phát hành riêng
l■ cho c■ ■ông qualified ( có ti■n ho■c có knowledge) mà ko nh■t thi■t là ph■i c■ ■ông hi■n
h■u
Question:
In an underwritten offering, the risk that the entire issue may not be sold to the public at the
stipulated offering price is borne by the: D■ch " at the stipulated offering price" & "borne by".
Answer:
at the stipulated offering price = m■c giá xác ■■nh tr■■c borne by = ch■u trách nhi■m b■i
Question:
Well-functioning financial system là gì?
Answer:
Có 3 y■u t■: Operational Efficiency Informational Efficiency Allocational Efficiency
Question:
Market efficiency là gì?
Answer:
, Th■ tr■■ng hi■u qu■ là 1 th■ tr■■ng mà price ph■n ánh h■t các tin t■c quá kh■ và hi■n t■i,
và ph■n ■ng nhanh chóng v■i các tin t■c m■i trên th■ tr■■ng T■i ■ó Market value = instrinsic
value
Question:
Observed overreactions in markets can be explained by an investor's degree of:.
Answer:
"overreactions" = loss aversion
Question:
Risk aversion Loss aversion Là gì?
Answer:
Risk aversion (Ác c■m r■i ro) ko thích s■ ko ch■n ch■n Loss Aversion (Ác c■m v■ m■t mát)
thích ch■t non
Question:
With respect to rational and irrational investment decisions, the efficient market hypothesis requires:
A. Only that the market is rational B. That all investors make rational decisions C. That some
investors make irrational decisions.
Answer:
key word "requires" = nó h■i b■n ch■t th■ tr■■ng không ph■i miêu t■ m■y th■ khác Th■
tr■■ng hi■u qu■ ch■p nh■n có vài thành ph■n không ■■■c lý trí cho l■m, nh■ng outcomes
v■n là s■ ko lý trí t■o nên 1 th■ tr■■ng hi■u qu■ =))))
Question:
In an efficient market, fundamental analysis most likely requires that the analyst must: A.
Extrapolate historical data to estimate future values and take investment decisions. B. Do a superior
job of estimating the relevant variables and predict earnings surprises. C. Use trading rules for
detecting the price movements that lead to new equilibrium prices.
Answer:
