FINA 061 Bloomberg Trial Exam Solved guide 2023.pdf

A tendency to expand the borrowing capacity of the company. Correct answer- What impact will a tightening of the corporate spread most likely have on a company? Corporate impact, global impact, consumer impact. Correct answer- What are the three main transmission mechanisms by which the yield curve affects the economy? A house Correct answer- The purchase of which of the following products is most affected by interest rates? Central bank interest rates Correct answer- What is the primary driver of the left-hand end of the yield curve? An inverted yield curve means that bond traders are predicting interest rate cuts, and interest rate cuts happen in response to a recession. Correct answer- Why does the yield curve tend to invert shortly before a recession? IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize their work. Correct answer- Why do companies do IPOs? an IPO crystallizes the value of the manager-owners stake. Correct answer- Why do company manager-owners smile when they ring the stock exchange bell at their IPO? Her mortgage payments and necessities are fixed. Correct answer- What is the prime reason that Jenny's discretionary income is more volatile than her salary? A shareholder in a booming economy. Correct answer- A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be? Due to the residual nature of earnings Correct answer- Why are equities volatile? When you buy an equity, the most you can lose is 100% and your potential gain is unlimited. Correct answer- Which of the following statements is true? Both are estimated in advance by analysts. Correct answer- What does the release of earnings announcements have in common with the release of economic indicators? A comparison of the commercial prospects of new aircraft models Correct answerEngines 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 RollsRoyce analyst research note to help a portfolio manager decide between investing in Rolls-Royce or United Technologies? Median age of society Correct answer- You are building a financial model of a bifocal lens manufacturer. Which of the following is the best driver to use?