Summary: Alternative Investments

Study material generic cover image
  • This + 400k other summaries
  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Use this summary
Remember faster, study better. Scientifically proven.
Trustpilot Logo

Read the summary and the most important questions on Alternative Investments

  • alternative investments HC1

    This is a preview. There are 11 more flashcards available for chapter 03/09/2018
    Show more cards here

  • What are financial assets?

    Financial assets are claims to the income generated
    by real assets.
  • What is productive capacity a function of?

    Real assets (land, building, machines etc)
  • How do governments finance their activities?

    Government bonds
  • What are characteristics of equity?

    1) Ownership share in corporation
    2) Income determined by dividends or by increase/decrease stock price
    3) Tend to be riskier than debt securities
  • What is available on the primary market?

    1) Newly issued securities
    2) Stocks ; IPO, Seasoned/secondary equity offering
    3) Investment bankers and underwriting
    4) Underpricing
  • What does the Firm-Foundation theory mean? Name 4 characteristics

    1) Intrinsic value (IV)
    2) Present and past conditions, and future prospects
    3) When market price < IV then buy, otherwise sell
    4) Difficult to correctly assess IV
  • What does the Castle-In-The-Air Theory mean? Name 3 characteristics

    1) Behaviour of investors
    2) When E(future price) > current price then buy, otherwise sell
    3) Difficult to assess the behaviour
  • How do you measure stock return?

    Rt = 100 * ((Divt +Pt -P(t-1))/P(t-1))
  • Alternative Investment HC2

    This is a preview. There are 12 more flashcards available for chapter 06/09/2018
    Show more cards here

  • What is the weak form of EMH?

    Security prices reflect all price history information
  • Alternative Investments HC4

    This is a preview. There are 23 more flashcards available for chapter 13/09/2018
    Show more cards here

  • Name 4 ways to measure the performance of an investment?

    1. Sharpe ratio
    2. Comparison with benchmark
    3. Comparison against a static strategy
    4. Using asset pricing model

To read further, please click:

Read the full summary
This summary +380.000 other summaries A unique study tool A rehearsal system for this summary Studycoaching with videos
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart