investment flashcards
1
Q
Price/Book Ratio
A
closing price/(assets-intangible assets-liabilities)
2
Q
nav
A
(total value of all securities-liabilities)/number of shares
3
Q
When is nav calculated for mutual funds?
A
Everyday at the close of the market. All buy and sell orders are included.
4
Q
Why are changes in nav not a good gauge of mutual fund performance?
A
They pay out all capitol gains and income to shareholders.
5
Q
alpha
A
Shows how close the returns matched the risk taken to get them
7
Q
sharpe ratio describes
A
how much you are being compensated for the risk you are taking
9
Q
What is CAPM used for?
A
To identify the required return of an investment.
10
Q
Jensen Index
A
alpha
