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Exam (elaborations)

ECN 104 EXAM QUESTIONS AND ANSWERS ALL CORRECT NEW UPDATE

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ECN 104 EXAM QUESTIONS AND ANSWERS ALL CORRECT NEW UPDATE Deciding whether to invest - Answer- 1. Revenues 2. Expenses 3. Depreciation 4. Net Income 5. Operating Cash Flow 6. Total change in NWC 7. Capital spending 8. Net cash flow 9. NPV Arbitrage - Answer- Investors exploiting price ...

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  • November 16, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ecn 104
  • ecn 104 exam
  • ECN 104
  • ECN 104
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ECN 104 EXAM QUESTIONS AND
ANSWERS ALL CORRECT NEW
UPDATE

Deciding whether to invest - Answer- 1. Revenues
2. Expenses
3. Depreciation
4. Net Income
5. Operating Cash Flow
6. Total change in NWC
7. Capital spending
8. Net cash flow
9. NPV

Arbitrage - Answer- Investors exploiting price differences in assets between different
locations

Yield - Answer- Income received while owning an asset

Capital gain - Answer- Increase in value of the asset

Hedge funds - Answer- Only accept money from a small number of wealthy investors-
aggressive investments

Pension funds - Answer- Invest the retirement savings of a large number of individuals-
much more risk averse

Mutual funds - Answer- Pool the money from a large number of individuals and invest
according to stated goals

Money market - Answer- Debt instruments with maturity of one year or less

Capital market - Answer- Money is borrowed or lent for a longer time period through
bonds or shares

Primary market - Answer- Issue of new securities

Secondary market - Answer- Sale of securities that have already been issued

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