Hard to Remember Flashcards
How is the Information Ratio Calculated?
(Portfolio return - Benchmark return) / SD of difference between portfolio and benchmark
How is Holding Period Return (HPR) Calculated?
(Selling price - purchase price +/- cashflows) / purchase price or equity invested
How is HPR Calculated when Buying on Margin?
Same formula, but purchase price is the owner’s equity and the loan + interest must be subtracted in the numerator. The denominator must be the owner’s equity
How is the Dividend Discount Model Calculated?
D1 / (required rate - dividend growth rate)
What is the Expected Rate of Return formula?
(D1 / market price) + growth rate
What are 3 Year Properties?
Tractors, horses, and rent-to-own property
What are 5 Year Properties?
Autos, computers, office machines, breeding/dairy cattle, rental property appliances & furniture, solar/wind property
What are 7 Year Properties?
Office furniture, agricultural machinery
What are 27.5 Year Properties?
Rental homes; uses mid month convention
What are 39 Year Properties?
Nonresidential real property; uses mid month convention
What are the Section 179 Limits?
The lesser of:$139k or $699k - PPS (if PPS is > $560k)Property Placed in ServiceTaxable IncomeNot available for real or production of income property
What is the IRA Deduction Phaseout for a Single Person with an active retirement plan?
AGI between $58k and $68k
What is the IRA Deduction Phaseout for a Married Couple, Both with an active retirement plan?
AGI between $92k and $112k
What is the IRA Deduction Phaseout for a Married Couple, One of which has an active retirement plan?
AGI between $92k and $112k for the one with the active plan, $173k and $183 for the one without the active plan
What are the RIRA Contribution Phaseout Limits for a Single Person?
AGI of $110k to $125k
