Module 1 - Videos Flashcards
1
Q
What are sources of returns?
A
Capital gains and dividends
2
Q
Total risk of a portfolio
A
Standard deviation
3
Q
measuring ____ and _____ is foundational to all investments
A
risk and return
4
Q
how much an asset returns over risk free rate
A
risk premium, excess return
5
Q
what that stock mkt in general returns over and above risk free rate
A
market risk premium
6
Q
two ways to calculate returns and how
A
discrete - (P1 - P0)+ Div / P0
continuous - LN((P1+DIV)/P0)
7
Q
3 ways to calculate averages
A
Arithmetic- sum/count of discrete return
Geometric - (1+Return), Multiply those together, raised 1/4, minus 1
Continuous - sum/count of continuous return
8
Q
standard deviation formula
A
(return-avg)^2, sum, square root of sum/count
