Investments Flashcards
1
Q
Sharpe
A
Std dev
Remember for Ss. Std deviation
2
Q
Traynor
A
Beta
3
Q
Alpha
A
Absolute measure
Alpha cannot compare
4
Q
Risk
A
Qualitative and quanta five
5
Q
Total risk
A
Unsystematic and systematic
Measure by std
6
Q
Systematic Risk
A
Cannot be diversified away
Risk in the system
Beta
7
Q
Bond risks
A
Interest rate risk
Reinvestment risk
Purchasing power risk
8
Q
Business risk
A
Single company
9
Q
Financial risk
A
Leverage. Too much bonds
10
Q
Bond risk
A
Drip Default Reinvestment Interest rate Purchasing power risk
11
Q
Std
A
68
95
99
Positive skew ness is better. Hump to left
12
Q
Leptokurtic
A
Leap in returns
13
Q
Playkurtic
A
Plate. Lower peak
14
Q
Std calc
A
Sum
Gold 7
Gold 8
15
Q
Coefficient of determination
A
R2. Higher number closer correlation. Looking above .7