Series 65 section 1

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  1. what is mean
  2. what is median
    middle number
  3. what are leading economic indicators
    work week, building permit, S&P 500,inflation adjusted M2
  4. what are coincident indicators
    industrial production, and number of employees on payroll.
  5. .what are lagging indicator
    unemployment claim, change in Consumer Price Index
  6. does a value stock have a high or a low P/B
    low, why?
  7. growth stock has a high P/E, high P/E, and high Beta. Why?
    noodle it out
  8. What is the capital asset pricing model?
    used to determine expected return on a  diversified portfolio
  9. What is Alpha
    return that is an excess of the capital asset pricing model
  10. If a stock has a beta of 1 and a return of 12% is the stock under or over valued? Assuming a beta of 1 has an expected return of 10%
    Undervalued. Why?
  11. what Is the risk premium?
    the rate of return on investment that is an excess of the rIsk free return.
  12. what does the efficent market hypothesis state?
    everything to be known as already known, there is no way to beat the market
  13. what are the three forms of the efficient market hypothesis
    • weak =fundamental analysis
    • Semi- strong - insider trading
    • Strong - impervious to prediction
  14. what does a fundamental analyst study
    the company's financial statement
  15. what are the three main financial statements
    the balance sheet the income statement and the statement of cash flow
  16. what three things does the balance sheet provide
    • assets,
    • liabilities,
    • shareholders equity.
  17. what is the balance sheet equation
    assets = liabilities + shareholders equity
  18. what is the spot exchange rate
    the current exchange rate
  19. what is the forward exchange rate
    and exchange rate that is quoted and traded today but delivered later
  20. how do publicly traded companies file information with the SEC
    • through the EDGAR system
    • 8th
    • 10th
    • 10Q
  21. A thinly traded issue has what kind of risk?
  22. what kind of liquidity does the current ratio measure
    short term liquidity
  23. limited partnerships have what kind of risk
    liquidity risk
  24. what is a thin market
    • when very few shares are for sale or purchase in the secondary market.
    • also known as liquid the rIsk
  25. Risk-adjusted return may be measured by what ratio
    the Sharp ratio
  26. what is found on the balance sheet
    • assets
    • Liabilities
  27. what is found on the income statement
    • revenue
    • dividends
    • Depreciation
    • Net income
  28. how do you find an investor's net worth
    • Assets - liabilities
    • found on the investors balance sheet
  29. How do the various financial statements interact
    Net income ☞ balance sheet ☞ retained earnings
  30. List the parts of the balance of payments account
    • Balance of trade acct
    • Current acct
    • Balance of payment acct
  31. what does systematic risk include
    • market risk
    • inflationary
    • risk exchange rate
    • interest rate risk
  32. what does unsystematic risk include
    • business risk
    • regulatory risk
    • political risk
    • liquidity risk
  33. What are the four components of shareholder equity
    • Preferred stock at par
    • Common stock at par
    • paid in surpluse
    • retained earnings
Card Set
Series 65 section 1
Series 65
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