ACT 3050 Lecture Notes - Lecture 8: Write Protection, Technical Analysis, Income Approach
Document Summary
Inflation rate (cpi now - cpi old) / cpi old. M1 + liquid assets that can be converted to m1. Certificates of deposit, money market deposit accts, mutual funds, savings acct. Rate charged by fed to banks for short term loans. Intersects avc and atc at their minimum points. Mc above the minimum point of the avc curve. Porter- global competitive advantage: conditions of fop, conditions of domestic demand, related and supporting industries, firm strategy, structure and rivalry. Failure to define psb in a database mgt system leads to incomplete processing. Ability to sell a security for its face value quickly and in large amounts. Analyzing historic data to predict future price movements of securities. Using factors specific to a firm to find undervalued stocks. Free to use any valuation approach that is professionally appropriate. Valuation analyst and client agree on a valuation approach. Economic substitution principle: cost to replace the item.
