Why Investors Have an Aversion to Europe's Finance Firms

Why Investors Have an Aversion to Europe's Finance Firms

Assessment

Interactive Video

Business

University

Hard

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The video discusses the challenges facing European financials, including Brexit, financial regulation, and the specific issues with Deutsche Bank. It highlights the impact of regulatory measures and stress tests on European banks, which have not recovered as well as their US counterparts. The video also covers Deutsche Bank's legal challenges and the broader implications of low and negative interest rates on banks' profitability and growth prospects.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are some of the main concerns affecting European financials?

Brexit and financial regulation

High interest rates

Strong economic growth

Increased bank profitability

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why do European financials face a valuation discount compared to other markets?

Higher profitability

Stronger economic recovery

Regulatory challenges and lower returns on equity

Increased investor confidence

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the theoretical cost of equity for a bank, according to finance theory?

20%

10%

5%

15%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant challenge for Deutsche Bank as discussed in the video?

Strong market position

Excessive profitability

Legal fees and potential fines

High interest rates

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is causing a rethink of low interest rate policies?

High inflation rates

Backlash from financial leaders

Strong economic growth

Increased bank profits