Random Flashcards

1
Q

Current ratio =

A

Current assets / current liabilities

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2
Q

Systematic risk

A
PRIME
Purchasing power
Reinvestment rate
Interest rate 
Market
Exchange rate

***non-diversifiable
Measured by beta

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3
Q

Unsystematic risk

A

Diversifiable

Business and financial risk

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4
Q

GNMA vs FNMA/FHLMC

A

GNMA is guaranteed

Others you can get F’d out of your money

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5
Q

CMO Z tranche

A

Bears no coupon, most risk, receives cash flow after other tranches are satisfied

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6
Q

Risks associated with corporate and muni bonds:

A
DRIP
Default
Reinvestment
Interest rate
Purchasing power
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7
Q

Government bond risks:

A
RIP (no default or credit)
Reinvestment
Interest rate
Purchasing power
* no R w EEs and STRIPs
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8
Q

Government bonds you pay ——————- taxes

A

Federal

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