Chapter12-Behaviour of the markets

Question 1

Framework

Answer 1

1 Key risks faced by investors in asset classes
2 General price level of an asset class in the market
3 Factors affecting the demand of any asset class
4 Effect of economic influences (government policy) on short term interest rates
5 Conventional bond yield curve theories (LIME)
6 Economic influences on short term government bond yields
7 Economic influences on long term government bond yields
8 Factors affecting the yield gap between government and corporate bonds
9 Economic influences on the equity market
10 Impact of inflation on equity prices
11 Economic influences and the property market
12 Economic influences on the occupational property market
13 Economic influences on demand in the investment property market
14 Factors affecting the supply of property
15 Additional considerations for residential property
16 Other factors causing a change in demand for an asset class
17 Factors affecting investors’ preferences
18 Changes in investors’ income
19 Price of alternative investments