Sharpe ratio - Samenvattingen, Aantekeningen en Examens

Alpha - ️️Measure of risk-adjusted performance Beta - ️️Measure of a fund's or a stock's risk in relation to the market or to an alternative benchmark Gamma - ️️Ratio of a change in the option delta to a small change in the price of the asset on which the option is written PERS - ️️Public Employee Retirement System CAFR - ️️Comprehensive Annual Financial Report PERS CAFR - ️️Comprehensive Annual Financial Report for a Public Employee Retirement System ...

Nominal vs Real Interest Rate (+ Equations)Nominal interest rate: the growth rate of your $ as quoted on the investment Real interest rate: the growth rate of your purchasing power Approximation: r(r) = r(n) - i Exact: r(r) = (1+r)/(1+i) - 1 Fisher equation: r(n) = r(r) - E(i) What does the Sharpe Ratio measure?It is equal to the risk premium of portfolio divided by standard deviation. It measures tradeoff between return and risk. Three properties of a normal distribution1) Symmetric ...

CFA Level 1 - 101 Must Knows question with 100% correct answers 2023Addition Rule of Probability - correct answer ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - correct answer Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - correct answer Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

What is multiple Expansion? Basically when a company valuation increase with the EBITDA not changing What is Internal Rate of Return? A time-weighted metric that tells you what your compounded rate of return would be if you invested your money today and it grew at that rate over your investment horizon What is the difference between IRR and WACC? WACC: It is the minimum expected return one must expect given the risk profile of the asset / company IRR: Is the actual rate of return on an invest...

FINC 340 Questions Correctly Answered. An investor deposited $10,000 into a portfolio at the beginning of the year. The portfolio increased by 8% by the end of the year. The investor withdrew half his funds and left the remaining on deposit. These funds increased by 20% over the next year. The investor then closed his account. What is the investor's two year holding period return? - CORRECT ANSWER A. 8.0% B. 14.0% C. 16.6% **D. 18.8% E. 20% Strategic asset allocation identif...

In dit document wordt alle leerstof voor het examen samengevat. Het bevat ook alle notities genomen in de lessen van financieel management gegeven door Prof. Dr. Stefan Straetmans. Bovendien worden alle extra elementen vanuit het boek ook besproken in het document.

FNCE 401 Final Exam All Possible Questions and Answers 2024/2025 Fully Solved 100%;Athabasca University FNCE 401 Final Exam All Possible Questions and Answers 2024/2025 Fully Solved 100% Part I – Multiple Choice Questions: (25 × 2 = 50 marks) 1. Corporate shareholders are best protected from incompetent management decisions by a. the ability to engage in proxy fights. b. management's control of pecuniary rewards. c. the ability to call shareholder meetings. d. the threat...

§Perpetuity FORMULA - •PV = PMT/I §Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation §CAPM FORMULA - •ri = rRF + (rM - rRF)bi What is the time value of money? - The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. §Why is inflation so important for cash flows? - Important for inflation, a dollar is worth more today than in the future due to interest rates increasing. HOW DOES COMPOUNDIN...

Cumulative Return - Answer The cumulative return is the total change in the investment price over a set time—an aggregate return, not an annualized one. (price[t]/price[0]) - 1 normalization from when stock was purchased Daily return - Answer (Today's stock price[t]/yesterday's stock price[t - 1]) - 1 sharpe ratio formula - Answer s = sqrt(252) * mean(daily_ret - daily_riskFree) / std(daily_ret - daily_riskFree) limit order - Answer A limit order is an order to buy o...

Price change based on convexity correct answer - -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration correct answer - Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration correct answer - [(v-)-(v+)]/[2V0(change in yield)] Future Value correct answer - PV(1+(I/Y)^N) PV correct answer - FV/(1+r)^n PV of perpetuity correct answer - PMT / discount rate Approximate percentage price change of a bond correct answer ...