4. (a) The price of oil fell dramatically in 2015. What sort of macroeconomic shock would this be considered?

(b). What are the differences between Bottom-up and Top-down approaches in security valuation? What are the advantages of a Top-down approach?

(c). Define each of the following in the context of a Business cycle.

1. Peak
2. Contraction
3. Trough
4. Expansion

(d). In which phase of the business cycle would you expect the following industries to enjoy their best performance?

1. Newspapers
2. Machine Tools
3. Beverages
4. Timber.