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Fundamental analysis- short,med,large range determine price changes in securitys. Quantitative analysis- interest rates, econ variables, stock valuation. Technical analysis- patterns/charts of past stock price predict future prices (stock mkt). Random walk theory- stock info disseminated, price changes no relation previous prices. Rational expectations hypoth- ppl rational/make intelligent decision. (security equal risk=highest risk) (security w/same rate=lower risk) Efficient mkt hypoth- security mkt price is difficult to outperform mkt. 1)emerging growth- neg cash, private owned, high risk of failure. 3)mature- slower growth, profit declines, earnings remain, customer loyalty. 4)declining- new products/technology, min growth, good cash flow. Liquidity ratio- company ability to meet short term. Current ratio- liquidity short term (current assets:cash, acc receivable/liability). Quick ratio (acid test)- test liquidity (current assets-inventory/liability). Debt/equity ratio- debt large reduces debt holder protection & increase risk. Price earnings ratio- investors pay for earnings, pe high increases stock mkt. Derivatives- drive value from underlining assets, all or nothing (highest)

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