Exam (elaborations)
CFA Level 1: Vocab Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
- Course
- Institution
CFA Level 1: Vocab Exam Questions and Answers 2024( A+ GRADED 100% VERIFIED).
[Show more]
Seller
Follow
Content preview
CFA Level 1: VocabA priori probability - ANS A probability based on logical analysis rather than on observation or
personal judgment.
Abnormal return - ANS The amount by which a security's actual return differs from its expected
return, given the security's risk and the market's return.
Absolute advantage - ANS A country's ability to produce a good or service at a lower absolute
cost than its trading partner.
Absolute dispersion - ANS The amount of variability present without comparison to any
reference point or benchmark.
Absolute frequency - ANS The number of observations in a given interval (for grouped data).
Accelerated book build - ANS An offering of securities by an investment bank acting as
principal that is accomplished in only one or two days.
Accelerated methods - ANS Depreciation methods that allocate a relatively large proportion of
the cost of an asset to the early years of the asset's useful life.
Accounting costs - ANS Monetary value of economic resources used in performing an activity.
These can be explicit, out-of-pocket, current payments, or an allocation of historical payments
(depreciation) for resources. They do not include implicit opportunity costs.
Accounting profit - ANS income before taxes or pre tax income.
Accounts receivable turnover - ANS Ratio of sales on credit to the average balance in accounts
receivable.
Accrued expenses - ANS accrued liabilities; Liabilities related to expenses that have been
incurred but not yet paid as of the end of an accounting period
Acid-test ratio - ANS A stringent measure of liquidity that indicates a company's ability to satisfy
current liabilities with its most liquid assets, calculated as (cash + short-term marketable
investments + receivables) divided by current liabilities.
, Accumulated depreciation - ANS An offset to property, plant, and equipment (PPE) reflecting
the amount of the cost of PPE that has been allocated to current and previous accounting
periods.
Acquisition method - ANS A method of accounting for a business combination where the
acquirer is required to measure each identifiable asset and liability at fair value. This method
was the result of a joint project of the IASB and FASB aiming at convergence in standards for
the accounting of business combinations.
Action lag - ANS Delay from policy decisions to implementation.
Active investment - ANS An approach to investing in which the investor seeks to outperform a
given benchmark.
Active return - ANS The return on a portfolio minus the return on the portfolio's benchmark.
Active strategy - ANS In reference to short-term cash management, an investment strategy
characterized by monitoring and attempting to capitalize on market conditions to optimize the
risk and return relationship of short-term investments.
Activity ratio - ANS The ratio of the labor force to total population of working age. Also called
participation ratio.
Activity ratios - ANS Ratios that measure how efficiently a company performs day-to-day tasks,
such as the collection of receivables and management of inventory. Also called asset utilization
ratios or operating efficiency ratios
Add-on rates - ANS Bank certificates of deposit, repos, and indices such as Libor and Euribor
are quoted on an add-on rate basis (bond equivalent yield basis).
Addition rule for probabilities - ANS A principle stating that the probability that A or B occurs
(both occur) equals the probability that A occurs, plus the probability that B occurs, minus the
probability that both A and B occur.
Agency RMBS - ANS In the United States, securities backed by residential mortgage loans and
guaranteed by a federal agency or guaranteed by either of the two GSEs (Fannie Mae and
Freddie Mac).
Aggregate demand - ANS The quantity of goods and services that households, businesses,
government, and foreign customers want to buy at any given level of prices.
Aggregate demand curve - ANS Inverse relationship between the price level and real output.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LECTSKYJAYDEN. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73091 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now