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Financial Management

What are some different types of analysis that may be performed when undertaking financial statement analysis?

What are some characteristics of an efficient market?

What is the relationship between risk and return?

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The response addresses the queries posted in 621 words with references.

//Before writing about the characteristics of an efficient market, it is essential to have knowledge about the different types of analysis that may be performed, when undertaking 'financial statement analysis', which further will assist in analyzing the characteristics effectively.//

Financial Management

Answer 1

Financial statement analysis involves the use of various financial statements. The different types of analysis included in the financial statement analysis are the analysis of the income statement, balance sheet analysis, ratio analysis and trend analysis. The analysis of the income statement and balance sheet includes the statement of retained earnings, sources and uses of funds statement, derivate statements and a statement of cash flows. The balance sheet summarizes the assets, liabilities and owners' equity of a business at the end of the financial year. The income statement summarizes the revenues and expenses of the firm over a particular period of time I.e. At the ...

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