Elements of a Thorough Company Analysis
A thorough company analysis will involve an examination of the company’s financial position,... Read More
Assets
Securities: Includes both debt and equity securities. Securities may be further classified as public or private securities, depending on if they are traded on a public exchange.
Currencies: Monies issued by national monetary authorities.
Contracts: Agreements to trade other assets in the future.
Commodities: Precious metals, energy products, industrial metals, and agricultural products.
Real Assets: All tangible properties, such as real estate, airplanes, airports, machinery, timberland, and pipelines.
Markets
Futures Markets/Forward Markets/Options Markets: Traded contracts require delivery at some date in the future. Contracts in the options markets are only delivered if the option is exercised.
Spot Markets: Traded contracts require immediate delivery.
Primary Market: Funds flow from the purchaser to the issuer.
Secondary Market: Funds flow between traders.
Money Markets: Trades debt instruments maturing in one year or less.
Capital Markets: Trades instruments maturing in over one year, such as bonds and equities. Corporations usually finance their operations through the capital markets.
Traditional Investment Markets: Transactions involve only direct or indirect investments in publicly traded debts and equities.
Alternative Investment Markets: Includes private markets investments, which are more difficult to trade and value. To compensate for the limited liquidity, investors in these markets expect to earn a greater risk-adjusted return than they would in traditional investments.
Question
A direct investment in an industrial warehouse is an example of a:
- Security.
- Contract.
- Real asset.
Solution
The correct answer is C.
Since the investment is in a tangible property (real estate), it would be considered a real asset.
Sergio Torrico
2021-07-23
Excelente para el FRM 2
Escribo esta revisión en español para los hispanohablantes, soy de Bolivia, y utilicé
AnalystPrep para dudas y consultas sobre mi preparación para el FRM nivel 2 (lo tomé una sola vez y aprobé muy bien), siempre tuve un soporte claro, directo y rápido, el material sale rápido cuando hay cambios en el temario de GARP, y los ejercicios y exámenes son muy útiles para practicar.
diana
2021-07-17
So helpful. I have been using the videos to prepare for the CFA Level II exam. The videos signpost the reading contents, explain the concepts and provide additional context for specific concepts.
The fun light-hearted analogies are also a welcome break to some very dry content.
I usually watch the videos before going into more in-depth reading and they are a good way to avoid being overwhelmed by the sheer volume of content when you look at the readings.
Kriti Dhawan
2021-07-16
A great curriculum provider. James sir explains the concept so well that rather than memorising it, you tend to intuitively understand and absorb them.
Thank you ! Grateful I saw this at the right time for my CFA prep.
nikhil kumar
2021-06-28
Very well explained and gives a great insight about topics in a very short time. Glad to have found Professor Forjan's lectures.
Marwan
2021-06-22
Great support throughout the course by the team, did not feel neglected
Benjamin anonymous
2021-05-10
I loved using AnalystPrep for FRM.
QBank is huge, videos are great.
Would recommend to a friend
Daniel Glyn
2021-03-24
I have finished my FRM1 thanks to AnalystPrep. And now using AnalystPrep for my FRM2 preparation. Professor Forjan is brilliant. He gives such good explanations and analogies. And more than anything makes learning fun. A big thank you to Analystprep and Professor Forjan. 5 stars all the way!
michael walshe
2021-03-18
Professor James' videos are excellent for understanding the underlying theories behind financial engineering / financial analysis. The AnalystPrep videos were better than any of the others that I searched through on YouTube for providing a clear explanation of some concepts, such as Portfolio theory, CAPM, and Arbitrage Pricing theory. Watching these cleared up many of the unclarities I had in my head. Highly recommended.