Exam 10: Macroanalysis and Microvaluation of the Stock Market

You are attempting to estimate expected earnings per share for a major stock market series. You have determined an appropriate estimate for sales per share. Which of the following methods can be used to estimate the profit margin?

An examination of the relationship between stock prices and the economy has shown that the relationship is

If interest rates rise due to inflation, and expected cash flows to a firm rise, then you would expect stock prices to

The dividend payout ratio, the required rate of return on common equity and the expected growth rate of stock dividends are the major variables that affect

Jensen, Johnson, and Mercer showed that the relationship between stock returns and size and price-to-book ratio holds in periods when monetary policy is

The index of leading indicators includes all of the following, except:

Which of the following statements concerning asset allocation is false?

There are three techniques available to help an investor make a market decision. Which of the following is not such an analysis technique?

If a diffusion index for new orders went from 87 to 74 and then to 68, it would indicate ____ receipt of new orders and indicate a ____ in breadth and the possibility of a future ____ in the series.

Which of the following variables was considered not significant in explaining stock returns?

All of the following factors affect the required rate of return except

Expected earnings per share estimates require all of the following except

Which of the following is not a determinant of the aggregate gross profit margin?

A microeconomic estimate of the market earnings multiple requires an estimate for which of the following variables?

Which of the following is not a reason given for why forecasters are so often incorrect?