CFP Investments Flashcards
1
Q
Yield curve with aggressive increases of discount rate and anticipated contraction down the line
A
Inverted curve
2
Q
Global standard for fund performance
A
TWRR
3
Q
Appropriate return for a specific client with their own particular cash flows
A
DWRR
4
Q
Performance return that accounts for when (and at what price level) investments are made and withdrawals occur
A
DWRR
5
Q
DWRR Calculation
A
Uneven cash flows
6
Q
TWRR Calculation
A
TVM keys
7
Q
Current Yield Calculation
A
Annual coupon payment / market price
8
Q
What is CAPM used to determine?
A
SML, expected & required return
9
Q
Collar Strategy
A
Long the stock, long the put, short the call (to offset the price of the protective put)
10
Q
Discount rate for NPV
A
Investor’s required rate of return
11
Q
Equity markets distribution
A
Positively skewed/ skewed to the right
