DCF Applications

Question 1

Calc, interpret the NPV of an investment

Answer 1

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Question 2

Calc, interpret the IRR of an investment

Answer 2

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Question 3

Contrast the NPV rule to IRR rule

Answer 3

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Question 4

Identify problems associated with IRR

Answer 4

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Question 5

Cal, interpret a holding period return (total return)

Answer 5

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Question 6

Calc the money weighted rate of return of a portfolio

Answer 6

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Question 7

Calc the time weighted rate of return of a portfolio

Answer 7

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Question 8

Evaluate the performance of a portfolio based on the money weighted rate of return

Answer 8

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Question 9

Evaluate the performance of a portfolio based on the time weighted rate of return

Answer 9

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Question 10

Compare the money-weighted to time-weighted rates of return of a portfolio

Answer 10

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Question 11

Calc, interpret bank discount yield for U.S. T-bills and other instruments

Answer 11

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Question 12

Calc, interpret holding period yield for U.S. T-bills and other instruments

Answer 12

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Question 13

Calc, interpret effective annual yield for U.S. T-bills and other instruments

Answer 13

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Question 14

Calc, interpret Money market yield for U.S. T-bills and other instruments

Answer 14

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Question 15

Convert among holding period yields, money market yields, effective annual yields, and bond equivalent yields.

Answer 15

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