Podcast
Questions and Answers
Why is global industry analysis important for valuing companies?
Why is global industry analysis important for valuing companies?
- To analyze and evaluate competitive forces that will affect returns (correct)
- To gain familiarity with the operations, trading mechanisms, costs, and constraints of foreign markets
- To understand the differences in national accounting standards affecting the raw information used for comparability
- To produce information about expected return and risk exposure
What is one of the challenges encountered when investing in foreign stocks?
What is one of the challenges encountered when investing in foreign stocks?
- Evaluating risk exposure
- Gaining familiarity with the operations, trading mechanisms, costs, and constraints of foreign markets (correct)
- Measuring the expected return on investment
- Understanding the differences in national accounting standards
What should the portfolio manager's investment approach be when investing in foreign stocks?
What should the portfolio manager's investment approach be when investing in foreign stocks?
- Global (correct)
- National
- Regional
- Local
What does international company analysis aim to produce?
What does international company analysis aim to produce?
Why is understanding differences in national accounting standards important when analyzing international companies?
Why is understanding differences in national accounting standards important when analyzing international companies?
What does the expected return on an investment include?
What does the expected return on an investment include?
What is the purpose of risk analysis?
What is the purpose of risk analysis?
Why does information constraint pose a problem for investment organizations when obtaining information from foreign firms?
Why does information constraint pose a problem for investment organizations when obtaining information from foreign firms?
What is the main challenge faced by investment organizations in structuring their international research effort?
What is the main challenge faced by investment organizations in structuring their international research effort?
How do investment organizations differ in their approach to international research based on their vision of the world?
How do investment organizations differ in their approach to international research based on their vision of the world?
What is the role of national accounting standards in investment organizations' analysis?
What is the role of national accounting standards in investment organizations' analysis?
Why is quantifying risk analysis important for investment organizations?
Why is quantifying risk analysis important for investment organizations?
What are the key factors that risk sensitivity measures how much a company’s value responds to?
What are the key factors that risk sensitivity measures how much a company’s value responds to?
What is the objective of security analysis?
What is the objective of security analysis?
What major approaches do investment organizations use for international research based on their vision of the world?
What major approaches do investment organizations use for international research based on their vision of the world?
What problem does difficulty in obtaining information from foreign firms pose for investment organizations?
What problem does difficulty in obtaining information from foreign firms pose for investment organizations?