TEST1 Flashcards
1
Q
What is duration? Edit
A
Duration is xyz.
2
Q
How do you calculate duration?
A
You calculate duration by doing abc.
3
Q
E(R) = Rf + B * (Rm - Rf)
A
CAPM
4
Q
SML
A
Security market line
5
Q
βa = ρa,m * σa / σm
A
Beta formula
6
Q
Beta of portfolio
A
βp = Σ wiβi
7
Q
Present Value of Perpetuity
A
CF_t+1 / (r - g)
8
Q
Sharpe ratio
A
Sp = (Rp - Rf) / σp
9
Q
Treynor ratio
A
Tp = (Rp - Rf) / βp
10
Q
Macauley duration of a portfolio
A
Dp = Σ wiDi
