Bloomberg Market Concepts Certification GUARANTEED PASS !!
Why do companies do IPOs? - (ANSWER)IPOs incentivize entrepreneurs to innovate as IPOs
provide a way for entrepreneurs to monetize their work.
Why do company manager-owners smile when they ring the stock exchange bell at their IPO? -
(ANSWER)An IPO reveals the value of the manager-owners' stake.
In 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000". At the time,
the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a
potential substitute for the book title? - (ANSWER)"The Sum of the Share Prices of All 30 Dow
Jones Members Will Triple"
What is the prime reason that Jenny's discretionary income is more volatile than her salary? -
(ANSWER)Her mortgage payments and necessities are fixed.
A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the
company would you rather be? - (ANSWER)a shareholder in a booming economy
What would the approximate return be on the S&P 500 from the trough of March 2009 (680) to
the end of 2013 (1,848), ignoring dividends? - (ANSWER)170%
Assume that an investor in the S&P 500 reinvests his dividends. According to the chart, what
approximate return would this investor have reaped from the early 2009 (1,000) trough to the
endpoint (3,400)? - (ANSWER)340%
Why are equities volatile? - (ANSWER)Due to the residual nature of earnings
Which of the following statements is true? - (ANSWER)When you buy an equity, the most you
can lose is 100% and your potential gain is unlimited.
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, Company A pays a dividend of 2%. Company B's stock price increases by 1% plus the inflation
rate every year. Company C pays 3% dividends, and its stock price decreases every year by 2%.
Company D pays 0% dividends, and its stock price does not increase year over year. If the
companies are otherwise identical, which would you invest in? - (ANSWER)Company B
You buy the stock of four consumer goods companies in March 2014 and hold them for five
years until March 2019. Here are the TRA charts from Bloomberg for all four stocks. The "Buy
Price" in the top left-hand corner is the price you paid for each stock. The price of the stock in
March 2019 is noted in the chart's legend. The legend also states the Dividend Adjusted Value of
the stock in March 2019, which is the value of the stock including reinvested dividends over the
holding period. For which stock did the bull of the total return come from dividends? -
(ANSWER)Colgate-Palmolive
What does the release of earnings announcements have in common with the release of economic
indicators? - (ANSWER)Both are scheduled in advance.
The number at the bottom right of each supplier's box shows the portion of Boeing's total costs in
the last year that went to that supplier... - (ANSWER)60.68%
Which company is most exposed to the ups and downs of the aircraft engine industry? -
(ANSWER)MTU Aero Engines
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? - (ANSWER)A comparison of the commercial prospects of new aircraft models
You are an analyst for a home-building company tasked with creating a financial model of
home-building trends. Which of the following factors should your model address? -
(ANSWER)The price of wood products and long-term interest rates
Here is a table from the Bloomberg Intelligence copper dashboard which shows the different
end-uses of aluminum in China. Which of the following headlines would be of most interest to
an aluminum trader in China? - (ANSWER)China's Aluminum Demand Weathers Real-Estate
Slowdown So Far
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Why do companies do IPOs? - (ANSWER)IPOs incentivize entrepreneurs to innovate as IPOs
provide a way for entrepreneurs to monetize their work.
Why do company manager-owners smile when they ring the stock exchange bell at their IPO? -
(ANSWER)An IPO reveals the value of the manager-owners' stake.
In 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000". At the time,
the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a
potential substitute for the book title? - (ANSWER)"The Sum of the Share Prices of All 30 Dow
Jones Members Will Triple"
What is the prime reason that Jenny's discretionary income is more volatile than her salary? -
(ANSWER)Her mortgage payments and necessities are fixed.
A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the
company would you rather be? - (ANSWER)a shareholder in a booming economy
What would the approximate return be on the S&P 500 from the trough of March 2009 (680) to
the end of 2013 (1,848), ignoring dividends? - (ANSWER)170%
Assume that an investor in the S&P 500 reinvests his dividends. According to the chart, what
approximate return would this investor have reaped from the early 2009 (1,000) trough to the
endpoint (3,400)? - (ANSWER)340%
Why are equities volatile? - (ANSWER)Due to the residual nature of earnings
Which of the following statements is true? - (ANSWER)When you buy an equity, the most you
can lose is 100% and your potential gain is unlimited.
Page 1 of 5
, Company A pays a dividend of 2%. Company B's stock price increases by 1% plus the inflation
rate every year. Company C pays 3% dividends, and its stock price decreases every year by 2%.
Company D pays 0% dividends, and its stock price does not increase year over year. If the
companies are otherwise identical, which would you invest in? - (ANSWER)Company B
You buy the stock of four consumer goods companies in March 2014 and hold them for five
years until March 2019. Here are the TRA charts from Bloomberg for all four stocks. The "Buy
Price" in the top left-hand corner is the price you paid for each stock. The price of the stock in
March 2019 is noted in the chart's legend. The legend also states the Dividend Adjusted Value of
the stock in March 2019, which is the value of the stock including reinvested dividends over the
holding period. For which stock did the bull of the total return come from dividends? -
(ANSWER)Colgate-Palmolive
What does the release of earnings announcements have in common with the release of economic
indicators? - (ANSWER)Both are scheduled in advance.
The number at the bottom right of each supplier's box shows the portion of Boeing's total costs in
the last year that went to that supplier... - (ANSWER)60.68%
Which company is most exposed to the ups and downs of the aircraft engine industry? -
(ANSWER)MTU Aero Engines
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? - (ANSWER)A comparison of the commercial prospects of new aircraft models
You are an analyst for a home-building company tasked with creating a financial model of
home-building trends. Which of the following factors should your model address? -
(ANSWER)The price of wood products and long-term interest rates
Here is a table from the Bloomberg Intelligence copper dashboard which shows the different
end-uses of aluminum in China. Which of the following headlines would be of most interest to
an aluminum trader in China? - (ANSWER)China's Aluminum Demand Weathers Real-Estate
Slowdown So Far
Page 2 of 5
