04:13 | Author: sang pencari ilmu

Analysis in an Efficient Market
Market Efficiency
1)assumes competent and informed analysis

2)distinguish aggregate from individual behavior

3)reflects information (both reliable and unreliable)
-country differences in rewards to analysis
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19:58 | Author: sang pencari ilmu


•Equals net cash flows + the change in the present value of future cash flows
•Measures change in shareholder value—reflecting the financial effects of all events in a comprehensive manner
•Includes both recurring and nonrecurring components—rendering it less useful for forecasting future earnings potential

•Related to Hicksian concept of income—income includes both realized (cash flow) and unrealized (holding gain or loss) components
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19:52 | Author: sang pencari ilmu

Interest rate characteristics will have an impact to the investing and
financing decision making since interest rate is a cost of funding and
expected outcome as well. Having the understanding of interest rate
characteristics, the most efficient cost of funding and higher expected
outcome will be resulted.
Compound interest rate is a common rate in business that has always
been modified with its compounding periods, known as effective interest
rate. In practice, the effective interest rate will be converted to the flat
interest rate so that it will be easy to do the investing and financing as
well as finding the most effective cost of funding with the highest
outcome.
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19:33 | Author: sang pencari ilmu


This research aimed to give empirical evidence whether Indonesian Bank Notes
(Sertifikat Bank Indonesia) and exchange rate as proxies of macro variables have
influence to systematics risk of stocks traded in Jakarta Stock Exchange. Using
multivariate regression analysis with data of 43 samples company listed in year 2000
to 2002 which is brokedown into manufacturing firms and non manufacturing firms,
we concluded that Indonesian Bank Notes and exchange rate have a significant
influence to the systematics risk. We also find an interisting result that indutry
concentration has attributes to alter the relationship between the two macro variables
and systematics risk. In manufacturing firms, only exchange rate which influences the
systematics risk, in contrary, only the Indonesian Bank notes has influence to the
systematic risk for nonmanufacturing firms.
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19:20 | Author: sang pencari ilmu

Learning Objectives

1)Explain the purpose of analysis.
2)Identify the building blocks of analysis.
3)Describe standards for comparisons in analysis.
4)Identify the tools of analysis.
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