Key Terms Flashcards
(29 cards)
What is used to determine the required rate of return of an asset if it is going to be added to an already diversified portfolio given that specific asset’s non-diversifiable risk.
Capital Asset Pricing Model (CAPM)
What is the return that is in excess of the return predicted by the capm
Alpha
What is the hypothesis that everything to be know is already know and there is now way to beat the market
The Efficient Market Hypothesis
The weak form of efficient market hypothesis you may profit from using what form of analysis
Fundamental
Where do publicly traded companies file information with the SEC
EDGAR
When is an 8K du
wi/in 4 days of a significant event
When is a 10Q due
three times a year (quarterly) unaudited
When is a 10K due
annually, audited
When must mutual fund holders receive reports
2 times a year
what measures short term liquidity
current ratio
what does a thinly traded market mean
liquidity risk
what measures risk adjusted return
sharpe ratio
what is the name of the foreign currency exchange market
FOREX
what includes all raw materials and manufactured goods bought, sold or given away
the balance of trades account which is part of the current account
how do you calculate working capital
current liabilities from current assets
what is at least two consecutive quarters of decline in a country’s gross domestic product
recession
what is the current ratio
current assets / current liabilities
which yield curve has always preceded a recession in our economy
negative yield curve
what is inflation adjusted gdp
real gdp
what do you get when you subtract the risk free rate of return from the actual return and divide by the standard deviation
sharpe ratio
What are the hours of the Forex
24 hours, except weekends
what is the maximum fee a no load mutual fund can charge?
.25%
what rating in s&p and moody’s are investment grade and higher
BBB and Baa
what is the Black Scholes pricing model for
Options
