PowerPoint 4 Flashcards
(5 cards)
1
Q
What’s a known measure for risk?
A
the index Altman Z
2
Q
what is the index Altman Z ?
A
Credit scoring index (Indicator based on financial statements, particularly the Balance sheet and Income Statement)
3
Q
Who is the Capital Asset Pricing Model important for ?
A
Capital Asset Pricing Model is important for investors
4
Q
Which ratios are use for the portfolio performance ?
A
Sharpe Ratio
Treynor Ratio
Jensen Alpha
5
Q
What’s the 4 important parts of hedging?
A
- Swaps – exchanging interest rate payments
- Caps – use options to set a maximum interest rate for borrowers
- Floors – use options to set a minimum interest rate for investors
- Forward Rate Agreement – set interest rate for a future period
