R1- Capital Market Expectations Flashcards
(11 cards)
1
Q
Steps for formulating market expectations (7)
A
2
Q
Exogenous shoks
A
Are unanticipated events that occur outside the normal course of an economy.
3
Q
F- long term growth
A
4
Q
Fill the blanks: advantage of leading indicalators are ______
A
Help predict future path of the economy.
5
Q
Check list aproach
A
List of questions that should indicate the future growth of the economy.
6
Q
The (5) business cycle:
A
7
Q
Comportament of inflation, bonds, equities during business cycle
A
8
Q
F- tailor rule
Tips short term should be the interest rates given central bank expectations
A
Used for central bank policies
9
Q
F- fiscal and trade balance
A
10
Q
What’s the most predominant country effect or industry effect in context of global equity markets
A
Country effect > industry effect
11
Q
A
