Exam 4: Research Methodology and Theories on the Uses of Accounting Information

What is fundamental analysis and what is its goal?

Discuss the capital asset pricing model including the concepts of unsystematic risk, systematic risk and beta.

Agency relationships involve costs to the principals. Discuss these costs. Give some examples of each of these costs.

Discuss the relationship among research, education, and practice in accounting.

Which of the following outcomes of providing accounting information is based on the supply and demand model?

In their book, "The End of Accounting and the Path Forward for Investors and Managers," Baruch Lev and Feng Gu maintain that flaws in generally accepted accounting principles severely limit the usefulness of financial reporting. What are the three major reasons the authors indicate why accounting reports have lost relevance? What is their solution to this perceived problem?

Which of the following anomalies are related to particular time periods?

Which of the following anomalies are related to strategies designed to outperform the market?

Which of the following research approaches is based on the concept of utility or usefulness?

The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as information, including security price trends, publicly available information, and insider information?

Which of the following outcomes of providing accounting information is an attempt to deal with both risks and returns?

What is the basic assumption of agency theory? Why is the relationship between shareholders and management an agency relationship?

According to finance theory, a financial market anomaly occurs when the performance of a stock or a group of stocks deviates from the assumptions of the efficient market hypothesis. Katz has classified anomalies into four basic types. a. What are these four types of anomalies? b. Give examples of each.

Which of the following research approaches emphasizes going from the specific to the general?