Random Flashcards
1
Q
Current ratio =
A
Current assets / current liabilities
2
Q
Systematic risk
A
PRIME Purchasing power Reinvestment rate Interest rate Market Exchange rate
***non-diversifiable
Measured by beta
3
Q
Unsystematic risk
A
Diversifiable
Business and financial risk
4
Q
GNMA vs FNMA/FHLMC
A
GNMA is guaranteed
Others you can get F’d out of your money
5
Q
CMO Z tranche
A
Bears no coupon, most risk, receives cash flow after other tranches are satisfied
6
Q
Risks associated with corporate and muni bonds:
A
DRIP Default Reinvestment Interest rate Purchasing power
7
Q
Government bond risks:
A
RIP (no default or credit) Reinvestment Interest rate Purchasing power * no R w EEs and STRIPs
8
Q
Government bonds you pay ——————- taxes
A
Federal