FAQs tagged as

Financial Theory

  1. Is it possible for a country to have a comparative advantage in everything?

  2. What economic measures can be taken to encourage free enterprise?

  3. How can an investor use the Z-Score to compare investment options?

  4. What are the different groups involved in corporate governance?

  5. What is the difference between ceteris paribus and mutatis mutandis?

  6. What does a strong null hypothesis mean?

  7. How does disposable income influence the marginal propensity to consume (MPC)?

  8. What is the difference between ex-ante moral hazard and ex-post moral hazard?

  9. What are the differences between weak, strong and semi-strong versions of the Efficient ...

  10. Does agency theory apply to brokers and clients?

  11. What is the concept of utility in microeconomics?

  12. What are the best measurements of economic growth

  13. How does economics study human action and behavior?

  14. How do different economic schools of thought treat the factors of production?

  15. Why is the Gordon Growth Model not more widely used?

  16. Why do some people consider the law of demand to be a tautology?

  17. Has the Efficient Market Hypothesis been proven correct or incorrect?

  18. Are economic recessions inevitable?

  19. What is capital structure theory?

  20. Why are there no profits in a perfectly competitive market?

  21. What is the difference between financial capital and economic capital?

  22. How do fund managers use correlation to create portfolio diversity?

  23. What is the Austrian Theory of the Business Cycle?

  24. How do interest rates coordinate savings and investment in the economy?

  25. How is an economy formed and why does it grow?

  26. Why is PPP (purchasing power parity) controversial?

  27. What math skills do I need to study microeconomics?

  28. What kinds of topics does microeconomics cover?

  29. How does the "Buffett Premium" increase Berkshire Hathaway's stock price?

  30. How do you calculate the ratio between debt and equity in the cost of capital

  31. How does quantitative easing in the U.S. affect the stock market?

  32. Which countries are most productive in terms of GDP?

  33. How do you calculate costs of capital when budgeting new projects?

  34. How does a nation transition from a socialist economy to a free market economy

  35. What is cash or pro forma income on an income statement?

  36. What is the difference between the cost of capital and required return?

  37. What is the difference between yield to maturity and the spot rate?

  38. Why was the practice of depreciating assets for accounting purposes created?

  39. How do companies measure labor supply in human resources planning?

  40. Why are OTC (over-the-counter) transactions controversial?

  41. What is the difference between cost of equity and cost of capital?

  42. What is arbitrage pricing theory?

  43. What does a high weighted average cost of capital (WACC) signify?

  44. How do economists and psychologists calculate diminishing marginal utility differently?

  45. What does the law of diminishing marginal utility explain?

  46. How can retirees protect their wealth in a bear market?

  47. How does the invisible hand phenomenon affect investment markets?

  48. What is the affect of the invisible hand on consumers?

  49. What are some examples of economies of scale?

  50. How can quantitative easing be effective in the economy?

  51. What are the most common issues with Serial Correlation in stocks?

  52. How do I calculate yield to maturity of a zero coupon bond?

  53. What does the term 'invisible hand' refer to in the economy?

  54. At what level is the current account deficit considered excessive, in terms of percent?

  55. What is the difference between yield and rate of return?

  56. What is the difference between arbitrage and speculation?

  57. What is the difference between positive and normative economics?

  58. What is finance?

  59. How does a company switch from one stock exchange to another?

  60. How can I use layaway plans for budgeting?

  61. How do open market operations affect the U.S. money supply?

  62. According to the CAPM, the expected return on a stock, that is part of a portfolio, ...

  63. A formula timing plan which consists of periodic purchases of a fixed dollar amount ...

  64. How do I know when to "rebalance" my investments?

  65. Why is Game Theory useful in business?

  66. What's the difference between consumer confidence and consumer sentiment?

  67. What is the difference between systemic risk and systematic risk?

  68. What does it mean when futures prices are in contango?

  69. Do speculators have a destabilizing effect on the financial system?

  70. What is a permanent portfolio?

  71. Does the balance sheet always balance?

  72. The conduit theory...

  73. What is moral hazard?

  74. Which statement(s) is/are FALSE about market risk?

  75. Which statement is FALSE about a prospectus issued under the Securities Act of 1933?

  76. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  77. What is an efficient market and how does it affect individual investors?

  78. What is the "random walk theory" and what does it mean for investors?

  79. Do noise traders have any long-term effect on stock prices?

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