A return-generating model that provides an estimate of the expected return of a security based on factors such as earnings growth and cash flow generation is best described as a:
A. Market factor model.
B. Fundamental factor model.
C. Macroeconomic factor model.
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An accounting document that records transactions in the order in which they occur is best described as a:
A. Trial balance.
B. General ledger.
C. General journal.
Equity return series are best described as, for the most part:
A. platykurtotic(less peaked than a normal distribution).
B. leptokurtotic(more peaked than a normal distribution).
C. mesokurtotic(identical to the normal distribution in peakedness).
Thomas Turkman recently hired Georgia Viggen, CFA, as a portfolio manager for North South Bank. Although Viggen worked many years for a competitor, West Star Bank, the move was straightforward because
A. clients.
B. The analyst.
C. Trading software.
Which attributes would a private equity firm most likely consider when deciding if a company is particularly attractive as a leveraged buyout target?
A. Sustainable cash flow
B. Efficiently managed companies
C. Market value exceeds intrinsic value