Financial analyst Study guides, Class notes & Summaries

1. Richard Cardinal, CFA, is the founder of Volcano Capital Research, an investment management firm whose sole activity is short selling. Cardinal seeks out companies whose stocks have had large price increases. Cardinal also pays several lobbying firms to update him immediately on any legislative or regulatory changes that may impact his target companies. Cardinal sells short those target companies he estimates are near the peak of their sales and earnings and that his sources identify as ...

EBITDA Correct Answer Earnings before Interest, Taxes, Depreciation, and Amortization 2 types of forecasting approaches Correct Answer Quantitative and Qualitative Quantitative approach to forecasting Correct Answer historical data from time series or correlation information Qualitative approach to forecasting Correct Answer opinions from experts, decision-makers, or customers 4 methods of quantitative forecasting Correct Answer 1. Naive 2. Moving averages 3. Exponential smoothing ...

Price change based on convexity Correct Answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration Correct Answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration Correct Answer [(v-)-(v+)]/[2V0(change in yield)] Future Value Correct Answer PV(1+(I/Y)^N) PV Correct Answer FV/(1+r)^n PV of perpetuity Correct Answer PMT / discount rate Approximate percentage price change of a bond Correct Answer (-)(modified...

Types of markets Correct Answer Factor markets = markets for factors of production (land, labor, capital), firms purchase services of factors of production (labor) from households and transform those services into intermediate and final goods and services. Goods markets = markets for the output produced by firms (legal and medical services) using the services of factors of production, households and firms act as buyers (intermediate goods and services use inputs to produce other goods while f...

A healthcare quality management professional has all of the following responsibilities toward improving patient safety EXCEPT: 1) Appointing a supervisor for a patient safety program 2) Incorporating new technology into a patient safety program 3) Helping to develop a patient safety program 4) Setting and reviewing goals for a patient safety program Correct Ans - 1) Appointing a supervisor for a patient safety program In terms of improving patient safety, the healthcare quality management...

Which of the following is a governance issue? A. Tax transparency B. Health and safety C. Working conditions - Answer A is correct because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Tax Transparency [falls under the umbrella of] Governance". B is incorrect because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Health & Safety [falls under th...

CISI – Regulations Final Exam Study Questions with COMPLETE SOLUTIONS (LATEST 2024] When the UK regulator allows a firm to undertake regulated activities, it grants which of the following? A Authorisation B Financial Services and Markets Act 2000 prohibition C Regulatory exemption D Part 4A Permission - CORRECT ANSWER D Part 4A Permission - Activities must be permitted by the Part 4A Permission (status would be permitted with authorization) According to the UK Prospectus Rules (P...

Tips On Good Analysis Correct Answer - Go from simple to complex -start with sales, gross margin, and net earnings; is the company growing and is it profitable - think about each piece of the formulas and what goes into them when making your hypotheses; not just the *sales* for example, what might have caused sales to change, pricing, volume, etc +break sales into into geographic region or business activities -ex. of analysis "net income is decreasing, this is bad; it is due to bad manage...

Product Markets (Goods Markets) Correct Answer Markets for goods and services to consumers Factor Markets Correct Answer Markets for factors of production (raw material, goods and services used in production) Intermediate Goods Correct Answer Good and services used in the production of final goods and services. Demand Function Correct Answer Provides the quantity demanded as a function of price of the good or service, the prices of related goods or services, and some measure of income. ...

CISI – Regulations Final Exam Study Questions with COMPLETE SOLUTIONS (LATEST 2024] When the UK regulator allows a firm to undertake regulated activities, it grants which of the following? A Authorisation B Financial Services and Markets Act 2000 prohibition C Regulatory exemption D Part 4A Permission - CORRECT ANSWER D Part 4A Permission - Activities must be permitted by the Part 4A Permission (status would be permitted with authorization) According to the UK Prospectus Rules (P...