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Fin 300 Correct answers latest update
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Fin 300 Correct answers latest update
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Fin 300 internal rate of return - ANS>rate that will make the net present value of all the cash flows to termination equal to zero holding period return - ANS>total return from an investment, including all sources of income, for a given period of time. the period of time can be a year, a month, a day, or any combination. cash flow adjusted rate of return - ANS>designed to calculate the rate of return accurately by adjusting for the timing of cash flows into and out of a portfolio. Designed to extract the return on investment by adjusting for any changes in the portfolio not directly attributable to the investment manager. statistical rate of return - ANS>assumes a constant investment at the beginning of every period. when you look at the return on an individual investment -without reference to when the investor bought, sold, or reinvested - or when you form expectations of future rates of return, then this approach is appropriate. time -weighted rate of return - ANS> assumes that the portfolio is completely reinvested at the end of every period. when you look at the return on an investment when the investor bought, sold, and reinvested, this approach is the appropriate one to use coefficient of variation - ANS>standardized measure of dispersion about the expected value. it is generally regarded as a better measure of risk when the alternatives under consideration have widely different expected returns. ratio of risk to return. regression analysis - ANS>statistical technique used to determine the degree of linear relationship between one or more independent variables and one dependent variable. standard deviation - ANS>a measure of the spread between the observed value and the expected value. correlation - ANS>determines the degree of diversification beta - ANS>index of market sensitivity portfolio return - ANS>weighted average of the expected returns of the components of the portfolio. portfolio beta - ANS>reflects the relative volatility of the portfolio as a whole. calculated as the weighted sum of the individual security betas. CAPM - ANS>expected return of a portfolio, or any asset in a portfolio, depends on its systematic risk beta rather than on its total risk. Security Market Line - ANS>relationship described by the CAPM equation, it specifies the linear relationship between the level of systematic risk (beta) and the normal return. Abnormal return/Jensen's alpha - ANS>abnormal return is the difference between the actual returned earned on an investment and the normal return. stock dividends/ splits - ANS>distribution to shareholders, generally in cash or less frequently in shares. Determined by board of directors. accredited investors - ANS>investors who are able to analyze the risk and return characteristics of the offering and have the financial resources to bear these risks 1913 federal reserve act - ANS>created the federal reserve system 30/360 - ANS>corporate bonds trade on this basis actual (ACT) days - ANS> T-bills trade on this basis accrued interest - ANS>interest earned since the last coupon paymentThe benefits of buying summaries with Stuvia:
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