Investments Flashcards
(8 cards)
Yield Ladder
Discount at the YMCA
YTC
YTM
CY
Annual coupon/nominal yield
Corporate and muni bond risk
DRIP
Default risk
Reinvestment risk
Interest rate risk
Purchasing power risk
Government bond risk (no zeros)
RIP
Reinvestment risk
Interest rate risk
Purchasing power risk
Option intrinsic value
COME
Call Option= market- exercise
POEM
Put Option = exercise-market
Systematic risk (Beta, nondiversifiable)
PRIME
Purchasing power
Reinvestment
Interest
Market
Exchange rate
Security Market Line (SML)
Capital Market Line (CML)
SML= smol, micro, stock
CML=macro (marcowitz)
Standard Deviation
Total risk (two words)
Stock Ratios
60 Big Rats
R2 > 60
Alpha (highest)
Treynor (if alpha not provided)
R<60
Sharpe (highest)