Reading 38: Equity: Concepts and Techniques-LOS d 习题精选 2011, border, following, statements

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Session 11: Equity Valuation: Industry and Company Analysis in a Global Context
Reading 38: Equity: Concepts and Techniques

LOS d: Discuss multifactor models in a global context.

 

 

Which of the following statements about multifactor models is CORRECT?

A) Multifactor models should be limited to about four factors to prevent implausible results from occurring.

B) Growth shares have a low price to book-value ratio.

C) Analysts could use complex statistical procedures to model risk exposures.

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Growth shares have a high price to book-value ratio. There is no limit in the number of factors to be used for multifactor models.

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Which of the following statements about multifactor models is CORRECT?

A) It is usually difficult to use a global index in a particular industry as a proxy for the industry factor.

B) When classifying stocks into certain categories, the country of origin does not matter.

C) The momentum effect suggests that performance in the short-term is stable.

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The momentum effect suggests that short-term past performance (good or bad) will continue in the short-term future. A relevant global index is often used as a proxy for the industry factor. There is a significant difference between countries in terms of criteria used to classify stocks into categories.

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Which of the following statements about multifactor models is least accurate?

A) Beta measures the sensitivity of the returns to each factor.

B) The momentum, size, and value effects can easily be adapted to a global context.

C) The random term in the equation represents diversifiable risk.

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Extreme caution must be taken with modeling the momentum, size, and value effects since different countries use different criteria in assessing variables such as size.

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Nichole Wolf, CFA, is analyzing inflation flow-through for Monique-Stuff, Inc. Wolf has assembled the following statistics:

• Real required return = 5%
• Inflation = 3%
• P/E = 14.1

  In the absence of real growth, which of the following is closest to the implied inflation flow-through rate?

  A) 20%

  B) 30%

  C) 70%

  
  

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  P/E	= 1 / [r + ((1 ? passthrough) * i)], therefore…
  E/P	= [r + ((1 ? passthrough) * i)]
  1 / 14.1	= 0.05 + (1 ? passthrough) * 0.03
  (0.07092 ? 0.05) / 0.03	= 1 ? passthrough
  passthrough	= 1 ? (.6974)
  passthrough	=30.26%