MFE pre-course

Question 1

What are the top 5 best M&A Advisors?

Answer 1

#1 Goldman Sachs
#2 Morgan Stanley
#3 JP Morgan
#4 Citi
#5 BAML

Question 2

What share of Mutual Fund and ETF Assets do largest 5 players have now and in 2005?

Answer 2

50% now and 36% in 2005

Question 3

What share of Mutual Fund and ETF Assets do largest 25 players have now and in 2005?

Answer 3

77% now and 69% in 2005

Question 4

What did Robert Shiller show?

Answer 4

That stock markets are excessively volatile using price to price feedback to explain stock market bubbles

Question 5

What are the most significant reasons hi tech fims IPO?

Answer 5

To establish a market price, enhance reputation and attract analyst attention

Question 6

How many annual IPOs before 2000 and after?

Answer 6

310 in 1980-2000 and 99 since 2000

Question 7

What has happened to VC exits?

Answer 7

M&A to other firms has taken over compared to IPO

Question 8

How much does a share need to be undervalued for a bid to be made

Answer 8

25-30%

Question 9

Who tends to receive the valua of M&A?

Answer 9

The target tends to earn money, the acquirer tends to lose money

Question 10

What is grossman and Hart’s argument about takeover bids?

Answer 10

They can only succeed if full value is offered, else the shareholders would not sell. Hence, target shareholders will receive all the value

Question 11

What was total deal value of M&A globally in h1 2018

Answer 11

USD About 3*10^12

Question 12

About how many M&A deals took place in h1 2018?

Answer 12

45000

Question 13

What was total deal value of M&A in US in h1 2018

Answer 13

USD 0.918*10^12

Question 14

What is the largest M&A target sector in h1 2018 globally?

Answer 14

Machinery, equipment, furniture, recycling

Question 15

What was total PE deal value in h1 2018?

Answer 15

USD 0.451012

Question 16

About how many PE deals took place in h1 2018?

Answer 16

12250

Question 17

What is AUM of top 100 alt asset managers

Answer 17

USD 4 trillion

Question 18

What is largest alternative asset mgmt asset class among top 100? Second and third largest?

Answer 18

#1 Real Estate (USD 1.4 trillion)
#2 PE
#3 Hedge Funds

Question 19

What is fee on inst. funds?

Answer 19

Less than 1%

Question 20

What is usual fee structure for hedge funds?

Answer 20

“2 and 20”

2% on the fund, 20% of the upside

Question 21

What are the 2 largest hedge fund sectors?

Answer 21

#1 Fixed Income
#2 Equity Long Bias

Question 22

What is total Hedge Fund aum (Q3 2017)?

Answer 22

USD 2.78 trillion

Question 23

Ranking of inst. sectors by AUM?

Answer 23

#1 pension funds
#2 Mutual funds
#3 Insurance

Question 24

Top 3 countries by AUM?

Answer 24

#1 US
#2 UK
#3 Japan

Question 25

Growth of US mutual fund AUM over past 40 years?

Answer 25

120x

Question 26

What was global nominal GDP in 2017?

Answer 26

USD 80.1 trillion

Question 27

What was global stock market capitalisation in May 2018?

Answer 27

USD 86 trillion

Question 28

What was global bond market capitalisation in december 2016?

Answer 28

USD 92 trillion

Question 29

What was US house net national wealth in Q1 2018?

Answer 29

USD 100 trillion

Question 30

About what is total derivative notional amount?

Answer 30

USD 500 trillion

Question 31

What is the largest stock exchange by market cap and is the market cap?

Answer 31

NYSE, ~23 trillion

Question 32

What is market cap to GDP in US and UK?

Answer 32

102% and 129%