Chapter 9 & 10 Flashcards Preview

Investments Test 2 > Chapter 9 & 10 > Flashcards

Flashcards in Chapter 9 & 10 Deck (8):
1

A valuation model that users dividends and their growth properaly discounted back to the present

Dividend-growth valuation model

2

The price/ earnings ratio divided by the growth rate of earnings

PEG ratio

3

Income plus price appreciation during a specified time period divided by the cost of the investment

Holding period return (HPR)

4

The discount rate the equates the cost of an investment (cash outflows) with the cash in flows generated by the investment

Rate of return (internal rate of return or IRR)

5

The rate that equates the present value of cash inflows and cash outflows; the internal rate of return

Dollar-weighted rate of return

6

Geometric average of individual holding period returns

Time-weighted rate of return

7

The purchase of securities at different intervals to reduce the impact of price fluctuations

Dollar cost averaging

8

A system for the accumulation of shares in which the investor periodically buys the same number of shares

Share averaging