10. CME 1

Question 1

Capital Market Expectations: Part 1

Framework and Macro Considerations

10 LOS

Essay | Econ: 10%, 8%, 8%

Answer 1

Question 2

10a: Discuss the role/framework of/for capital market expectations in the portfolio management process

Answer 2

Question 3

10b. Discuss challenges in developing capital market forecasts.

Answer 3

Question 4

10c. Explain how exogenous shocks may affect economic growth trends

Answer 4

Question 5

10d. Discuss the application of economic growth trend analysis

Answer 5

Question 6

10e. compare major approaches to economic forecasting;

Answer 6

Question 7

10f. Discuss how business cycles -> expectations (ST | LT)

Answer 7

Question 8

10g. Explain the relationship of inflation to the business cycle and the implications of inflation for cash, bonds, equity, and real estate returns

Answer 8

Question 9

10h. Discuss the effects of monetary/fiscal policy on business cycles

Answer 9

Question 10

10i. Interpret the yield curve shape as an economic predictor and discuss the relationship between the yield curve and fiscal and monetary policy

Answer 10

Question 11

10j. Identify and interpret macroeconomic, interest rate, and exchange rate linkages between economies.

Answer 11