This preview shows page 1. Sign up to view the full content.
Unformatted text preview: would most likely rccci\·e a:
J capital loss
cap ital gain
c .) could be either <~ b) 4. 'vVhcn interest rates are expected to fall in the future. this
of a bond and
a current holder of a bond: .
c J hurts. benefits
d .) hurts. hurts
a. ) h) _a prospccti\·e purchaser ;; 5. In Phase 1 of the stock market model, an a\·eragc ne11· fm11 would have expected camings
than current reported earnings and an average oJd ftm1 would haYe expected
- - - earnings_
than current reportcd earnings.
n.) greater. less b l less, greater
c) equal to, less
equal to '
less,' less d) Jess
e) 6. -- At the very beginning of Phase IV of our stock market model, financial incentives to beat
earnings expectations arc
, and average stock prices arc almost certainly
c) Weak. l~1l l ing
d) Weak, rising
a) b) · 7. As \Ne move later on in Phase l V, our model imp! ics that the bottom of the stock marker
the bottom of the actual earnings cycle:.
View Full Document
This note was uploaded on 01/19/2014 for the course ECON 345 taught by Professor Sumaila during the Winter '09 term at The University of British Columbia.
- Winter '09