Quantative Methods Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Nominal risk free rate approx

A

Real risk free rate + expected inflation rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Types of risks affecting securities (3)?

A

1) Default risk
2) Liquidity risk
3) Maturity risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Real interest rate

A

Interest rate before taking inflation into account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Holding period return

A

Percentage increase in value of investment over that period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Internal rate of return (IRR)

A

Interest rate at which a series of cash inflows and outflows sum to zero when discounted to present value. (E.g. NPV of zero)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Money weighted rate of return

A

IRR on a portfolio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Winsorised mean

A

Substitute % of extreme values for those at the boundary at the %

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Properties of central limit theorem (3)

A
  • If n>=30 distribution of sample means is normal
  • Mean of population = mean of sample means
  • Variance of sample = variance of population/ sample size n
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Type 1 and type 2 error hypothesis testing

A

Type 1: H0 true and we reject
Type 2: H0 false and we don’t reject

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Hypothesis testing for dependant and independent samples.

A

Independent: Test differences between means
Dependant: Test significance of the mean of the differences between paired sample s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly