ADMS 4501- Midterm Exam Guide - Comprehensive Notes for the exam ( 171 pages long!)

• School: York University
• Department: Administrative Studies
• Course: ADMS 4501
• Professor: Lois King

Document Summary

Expansionary (looser) monetary policy to lower interest rates would stimulate both investment and expenditures on consumer durables. Expansionary fiscal policy (i. e. , lower taxes, increased government spending, increased welfare transfers) would stimulate aggregate demand directly. A depreciating dollar makes imported cars more expensive and american cars less expensive to foreign consumers. This exercise is left to the student; answers will vary. A top-down approach to security valuation begins with an analysis of the global and domestic economy. Analysts who follow a top-down approach then narrow their attention to an industry or sector likely to perform well, given the expected performance of the broader economy. Finally, the analysis focuses on specific companies within an industry or sector that has been identified as likely to perform well. A bottom-up approach typically emphasizes fundamental analysis of individual company stocks, and is largely based on the belief that undervalued stocks will perform well regardless of the prospects for the industry or the broader economy.