unit 23

Question 1

nominal yield also called

Answer 1

coupon

fixed-rate stated on the face of bond

Question 2

current yield

Answer 2

annual interest/current market price

Question 3

yield to maturity

Answer 3

annual interest adjusted by annual gain and loss / annual cmv of face

Question 4

yield to call

Answer 4

annual interest adjusted by annual gain/loss / average of cmv and call price

Question 5

order of folcrum

Answer 5

cy, ytm, ytc

Question 6

Total return

Answer 6

income +gains and losses

Question 7

holding period return

Answer 7

total return over the whatever holding period is

Question 8

after tax return(yield)

Answer 8

pre tax return- marginal tax rate

Question 9

inflation(real) adjusted return

Answer 9

rate of return- inflation

Question 10

probable return

Answer 10

just take percentages and multiply them together

and then add them together

Question 11

dow jones industrial average

Answer 11

30 large cap stocks

PRICE WEIGHTED

Question 12

standard and poor’s 500

Answer 12

500 large cap stocks
market value(cap) weighted
benchmark for large cap equity

Question 13

NYSE composite

Answer 13

all nyse listed stocks
market value(cap) weighted

Question 14

s and p 400

Answer 14

400 mid cap stocks
market value(cap) weighted
standard benchmark for midcap equity

Question 15

russell 200 index

Answer 15

2000 small cap
market value(cap) wighted
standard for small cap equity

Question 16

EAFE

Answer 16

europe, australasia, and far east
market valu(Cap) weighted
standard benchmark for foreign equity

Question 17

wilshire 5000

Answer 17

the broadest indicator of us equities market

approximately 3500 securites

Question 18

sharpe ratio formula

Answer 18

Actual rate of return-RFR/ Standard deviation

Question 19

Time-weighted returns are used to evaluate

Answer 19

the performance of portfolio managers separate from the influence of additional investor deposits or withdrawals.