CFA一級(jí)Equity部分-Reading37課后習(xí)題及答案

Reading37IntroductiontoIndustryandCompanyAnalysis

1

Whichofthefollowingisleastlikelytoinvolveindustryanalysis?

ASectorrotationstrategy

BTop-downfundamentalinvesting

CTacticalassetallocationstrategy

SOLUTIONS:

1Ciscorrect.Tacticalassetallocationinvolvestiminginvestmentsinassetclassesanddoesnotmakeuseofindustryanalysis.

2

Asectorrotationstrategyinvolvesinvestinginasectorby:

Amakingregularinvestmentsinit.

Binvestinginapre-selectedgroupofsectorsonarotatingbasis.

Ctiminginvestmenttotakeadvantageofbusiness-cycleconditions.

SOLUTIONS:

2Ciscorrect.Asectorrotationstrategyisconductedbyinvestorswishingtotimeinvestmentinindustriesthroughananalysisoffundamentalsand/orbusiness-cycleconditions.

3

Whichofthefollowinginformationaboutacompanywouldmostlikelydependonanindustryanalysis?Thecompany’s:

Atreatmentoflong-livedassetsonitsfinancialstatements.

Bcompetitiveenvironment.

Ctrendsincorporateexpenses.

SOLUTIONS:

3Biscorrect.Determinationofacompany’scompetitiveenvironmentdependsonunderstandingitsindustry.

4

Inwhichsectorwouldamanufacturerofpersonalcareproductsbeclassified?

AHealthcare

BConsumerstaples

CConsumerdiscretionary

SOLUTIONS:

4Biscorrect.Personalcareproductsareclassifiedasconsumerstaplesinthe“DescriptionofRepresentativeSectors.”

5

Anautomobilemanufacturerismostlikelyclassifiedinwhichofthefollowingindustrysectors?

AConsumerstaples

BIndustrialdurables

CConsumerdiscretionary

SOLUTIONS:

5Ciscorrect.Automobilemanufacturersareclassifiedasconsumerdiscretionary.Consumerdiscretionarycompaniesderiveamajorityofrevenuefromthesaleofconsumer-relatedproductsforwhichdemandtendstoexhibitahighdegreeofeconomicsensitivity—thatis,highdemandduringperiodsofeconomicexpansionandlowdemandduringperiodsofcontraction.

6

Whichofthefollowingstatementsaboutcommercialandgovernmentindustryclassificationsystemsismostaccurate?

AManycommercialclassificationsystemsincludeprivatefor-profitcompanies.

BBothcommercialandgovernmentclassificationsystemsexcludenot-forprofitcompanies.

CCommercialclassificationsystemsaregenerallyupdatedmorefrequentlythangovernmentclassificationsystems.

SOLUTIONS:

6Ciscorrect.Commercialsystemsaregenerallyupdatedmorefrequentlythangovernmentsystemsandincludeonlypubliclytradedfor-profitcompanies.

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FromEquityReading37-P313

Classificationsystemsaredevelopedandusedbybothcommercialentitiesandvariousgovernmentalagencies.Mostgovernmentandcommercialclassificationsystemsarereviewedand,ifnecessary,updatedfromtimetotime.Generally,commercialclassificationsystemsareadjustedmorefrequentlythangovernmentclassificationsystems,whichmaybeupdatedonlyeveryfiveyearsorso.Wefocusonthecommercialsystemsbecausetheyaremorecommonlyusedintheinvestmentindustry.

Majorindexproviders,includingStandard&Poor’s,MSCI,RussellInvestments,DowJones,andFTSERussell,classifycompaniesintheirequityindexesintoindustrygroupings.

7

Whichofthefollowingisnotalimitationofthecyclical/non-cyclicaldescriptiveapproachtoclassifyingcompanies?

AAcyclicalcompanymayhaveagrowthcomponentinit.

BBusiness-cyclesensitivityisadiscretephenomenonratherthanacontinuousspectrum.

CAglobalcompanycanexperienceeconomicexpansioninonepartoftheworldwhileexperiencingrecessioninanotherpart.

SOLUTIONS:

7Biscorrect.Business-cyclesensitivityfallsonacontinuumandisnotadiscrete“either/or”phenomenon.

8

Acyclicalcompanyismostlikelyto:

Ahavelowoperatingleverage.

Bsellrelativelyinexpensiveproducts.

Cexperiencewider-than-averagefluctuationsindemand.

SOLUTIONS:

8Ciscorrect.Cyclicalcompaniesaresensitivetothebusinesscycle,withlowproductdemandduringperiodsofeconomiccontractionandhighproductdemandduringperiodsofeconomicexpansion.They,therefore,experiencewider-than-averagefluctuationsinproductdemand.

9

Acompanythatissensitivetothebusinesscyclewouldmostlikely:

Anothavegrowthopportunities.

Bexperiencebelow-averagefluctuationindemand.

Csellproductsthatcustomerscanpurchaseatalaterdateifnecessary.

SOLUTIONS:

9Ciscorrect.Customers’flexibilityastowhentheypurchaseaproductmakestheproductmoresensitivetothebusinesscycle.

10

Whichofthefollowingfactorswouldmostlikelybealimitationofapplyingbusiness-cycleanalysistoglobalindustryanalysis?

ASomeindustriesarerelativelyinsensitivetothebusinesscycle.

BCorrelationsofsecurityreturnsbetweendifferentworldmarketsarerelativelylow.

COneregionorcountryoftheworldmayexperiencerecessionwhileanotherregionexperiencesexpansion.

SOLUTIONS:

10Ciscorrect.Varyingconditionsofrecessionorexpansionaroundtheworldwouldaffectthecomparisonsofcompanieswithsalesindifferentregionsoftheworld.

11

Whichofthefollowingstatementsaboutpeergroupsismostaccurate?

AConstructingapeergroupforacompanyfollowsastandardizedprocess.

BCommercialindustryclassificationsystemsoftenprovideastartingpointforconstructingapeergroup.

CApeergroupisgenerallycomposedofallthecompaniesinthemostnarrowlydefinedcategoryusedbythecommercialindustryclassificationsystem.

SOLUTIONS:

11Biscorrect.Constructingapeergroupisasubjectiveprocess,andalogicalstartingpointistobeginwithacommerciallyavailableclassificationsystem.

Thissystemwillidentifyagroupofcompaniesthatmayhavepropertiescomparabletothebusinessactivityofinterest.

12

Withregardtoformingacompany’speergroup,whichofthefollowingstatementsisnotcorrect?

ACommentsfromthemanagementofthecompanyaboutcompetitorsaregenerallynotusedwhenselectingthepeergroup.

BThehighertheproportionofrevenueandoperatingprofitofthepeercompanyderivedfrombusinessactivitiessimilartothoseofthesubjectcompany,themoremeaningfulthecomparison.

CComparingthecompany’sperformancemeasureswiththoseforapotentialpeer-groupcompanyisoflimitedvaluewhenthecompaniesareexposedtodifferentstagesofthebusinesscycle.

SOLUTIONS:

12Aiscorrectbecauseitisafalsestatement.Reviewingtheannualreporttofindmanagement’sdiscussionaboutthecompetitiveenvironmentandspecificcompetitorsisasuggestedstepintheprocessofconstructingapeergroup.

13

Whenselectingcompaniesforinclusioninapeergroup,acompanyoperatinginthreedifferentbusinesssegmentswould:

Abeinonlyonepeergroup.

Bpossiblybeinmorethanonepeergroup.

Cnotbeincludedinanypeergroup.

SOLUTIONS:

13Biscorrect.Thecompanycouldbeinmorethanonepeergroupdependingonthedemanddriversforthebusinesssegments,althoughthemultiplebusinesssegmentsmaymakeitdifficulttoclassifythecompany.

14

Anindustrythatmostlikelyhasbothhighbarrierstoentryandhighbarrierstoexitisthe:

Arestaurantindustry.

Badvertisingindustry.

Cautomobileindustry.

SOLUTIONS:

14Ciscorrect.Fortheautomobileindustry,thehighcapitalrequirementsandotherelementsmentionedinthereadingprovidehighbarrierstoentry,andrecognitionthatautofactoriesaregenerallyonlyofuseformanufacturingcarsimpliesahighbarriertoexit.

15

Whichfactorismostlikelyassociatedwithstablemarketshare?

ALowswitchingcosts

BLowbarrierstoentry

CSlowpaceofproductinnovation

SOLUTIONS:

15Ciscorrect.Aslowpaceofproductinnovationoftenmeansthatcustomersprefertostaywithsupplierstheyknow,implyingstablemarketshares.

16

Whichofthefollowingcompaniesmostlikelyhasthegreatestabilitytoquicklyincreaseitscapacitytooffergoodsorservices?

AArestaurant

BAsteelproducer

CAninsurancecompany

SOLUTIONS:

16Ciscorrect.Capacityincreasesinprovidinginsuranceserviceswouldnotinvolveseveralfactorsthatwouldbeimportanttotheothertwoindustries,includingtheneedforsubstantialfixedcapitalinvestmentsor,inthecaseofarestaurant,outfittingrentalorpurchasedspace.Theserequirementswouldtendtoslowdown,respectively,steelproductionandrestaurantexpansion.

17

Apopulationthatisrapidlyagingwouldmostlikelycausethegrowthrateoftheindustryproducingeyeglassesandcontactlensesto:

Adecrease.

Bincrease.

Cnotchange.

SOLUTIONS:

17Biscorrect.Visiontypicallydeterioratesatadvancedages.Anincreasednumberofolderadultsimpliesmoreeyewearproductswillbepurchased.

18

Ifoveralongperiodoftimeacountry’saveragelevelofeducationalaccomplishmentincreases,thisdevelopmentwouldmostlikelyleadtothecountry’samountofincomespentonconsumerdiscretionarygoodsto:

Adecrease.

Bincrease.

Cnotchange.

SOLUTIONS:

18Biscorrect.Astheireducationallevelincreases,workersareabletoperformmoreskilledtasks,earnhigherwages,andasaresult,havemoreincomeleftfordiscretionaryexpenditures.

19

Ifthetechnologyforanindustryinvolveshighfixedcapitalinvestment,thenonewaytoseekhigherprofitgrowthisbypursuing:

Aeconomiesofscale.

Bdiseconomiesofscale.

Cremovaloffeaturesthatdifferentiatetheproductorserviceprovided.

SOLUTIONS:

19Aiscorrect.Seekingeconomiesofscalewouldtendtoreduceper-unitcostsandincreaseprofit.

20

Whichofthefollowinglife-cyclephasesistypicallycharacterizedbyhighprices?

AMature

BGrowth

CEmbryonic

SOLUTIONS:

20Ciscorrect.Theembryonicstageischaracterizedbyslowgrowthandhighprices.

21

Inwhichofthefollowinglife-cyclephasesarepricewarsmostlikelytobeabsent?

AMature

BDecline

CGrowth

SOLUTIONS:

21Ciscorrect.Thegrowthphaseisnotlikelytoexperiencepricewarsbecauseexpandingindustrydemandprovidescompaniestheopportunitytogrowevenwithoutincreasingmarketshare.Whenindustrygrowthisstagnant,companiesmayonlybeabletogrowbyincreasingmarketshare—forexample,byengaginginpricecompetition.

22

Whengraphicallydepictingthelife-cyclemodelforanindustryasacurve,thevariablesontheaxesare:

Apriceandtime.

Bdemandandtime.

Cdemandandstageofthelifecycle.

SOLUTIONS:

22Biscorrect.Theindustrylife-cyclemodelshowshowdemandevolvesovertimeasanindustrypassesfromtheembryonicstagethroughthestageofdecline.

23

Industryconsolidationandhighbarrierstoentrymostlikelycharacterizewhichlife-cyclestage?

AMature

BGrowth

CEmbryonic

SOLUTIONS:

23Aiscorrect.Industryconsolidationandrelativelyhighbarrierstoentryaretwocharacteristicsofamature-stageindustry.

24

Whichofthefollowingismostlikelyacharacteristicofaconcentratedindustry?

AInfrequent,tacitcoordination

BDifficultyinmonitoringotherindustrymembers

CIndustrymembersattemptingtoavoidcompetitiononprice

SOLUTIONS:

24Ciscorrect.Therelativelyfewmembersoftheindustrygenerallytrytoavoidpricecompetition.

25

Whichofthefollowingindustrycharacteristicsisgenerallyleastlikelytoproducehighreturnsoncapital?

AHighbarrierstoentry

BHighdegreeofconcentration

CShortleadtimetobuildnewplants

SOLUTIONS:

25Ciscorrect.Withshortleadtimes,industrycapacitycanberapidlyincreasedtosatisfydemand,butitmayalsoleadtoovercapacityandlowerprofits.

26

Anindustrywithhighbarrierstoentryandweakpricingpowermostlikelyhas:

Ahighbarrierstoexit.

Bstablemarketshares.

Csignificantnumbersofissuedpatents.

SOLUTIONS:

26Aiscorrect.Anindustrythathashighbarrierstoentrygenerallyrequiressubstantialphysicalcapitaland/orfinancialinvestment.Withweakpricingpowerintheindustry,findingabuyerforexcesscapacity(i.e.,toexittheindustry)maybedifficult.

27

Economicvalueiscreatedforanindustry’sshareholderswhentheindustryearnsareturn:

Abelowthecostofcapital.

Bequaltothecostofcapital.

Cabovethecostofcapital.

SOLUTIONS:

27Ciscorrect.Economicprofitisearnedandvalueiscreatedforshareholderswhentheindustryearnsreturnsabovethecompany’scostofcapital.

28

Whichofthefollowingindustriesismostlikelytobecharacterizedasconcentratedwithstrongpricingpower?

AAssetmanagement

BAlcoholicbeverages

CHouseholdandpersonalproducts

SOLUTIONS:

28Biscorrect.Thealcoholicbeverageindustryisconcentratedandpossessesstrongpricingpower.

29

Withrespecttocompetitivestrategy,acompanywithasuccessfulcostleadershipstrate