STOCK MARKETS ECONOMY

Explain the present value approach as applicable to shares
Describe the different versions of the dividend discount model
Apply the P/E approach to the valuation of shares
Interpret and apply the required rate of return when investing in shares
Distinguish between asset allocation and security selection
Describe the different passive and active strategies with regard to the management of a share portfolio
Identify the relationships between the most important economic variables and the share market.
Explain why the share market is a leading indicator of the economy
Describe the different forms of market efficiency
Identify the implications of the efficient market hypothesis
Define a market anomaly