Risk and Return Measures - Sample Questions 1 - 5
- With respect to the internal rate of return on an investment (IRR):
- It is the weighted average term to maturity of a bond's cash flows.
- It strips out the cash flow bias for an investment's return.
- It is a simple period return.
- It is a dollar weighted return which assumes reinvestment at the IRR to maturity.
- All of the following are forms of dollar weighted return, except:
- Yield to Maturity.
- Yield to Call.
- Internal Rate of Return.
- None of the foregoing.
- The current yield of Varity Corp. 9.07 of 20 is:
- 8.9% if Varity's current market value is 102
- 10.4% if Varity trades presently at 874
- a & c
- b & c
- Taxable Equivalent Yield may be defined as:
- The different between a tax-exempt yield and a taxable yield.
- The rate at which the investor would be indifferent to the tax-exempt yield.
- The yield obtained by "grossing up" the tax-exempt yield by the reciprocal of the investor's marginal tax bracket.
- Both b & c
- None of the foregoing.
- The nominal return on an investment is 11.34%. The real return is:
- The nominal return adjusted for inflation.
- 7.57% using a 3% inflation assumption.
- 7.57% using a 3.5% inflation assumption.
- Both a & c
Bonds & Fixed IncomeA contingent convertible, or coco, is a security that’s similar to a traditional convertible bond, but with one important difference.
TermA common size financial statement displays all items on a balance sheet as a percentage of a common base figure.
TermA cartel is a group of companies or countries that act together to control the price of a single good that they produce.
TermThe capacity utilization rate shows how much a firm or economy is producing as a percentage of what it’s capable of producing.
Mutual Funds & ETFsExamine the risk metric of the T. Rowe Price Health Sciences Fund. Analyze beta, capture ratios and standard deviation to assess volatility and systematic risk.
InvestingLearn about Verizon Communications, and discover the companies that are its key suppliers. Obtain a brief summary and analysis of each company.
Real EstateOften overshadowed by its cosmopolitan neighbor New York, the Garden State has a number of towns that offer luxury and space to those with deep pockets.
Mutual Funds & ETFsAnalyze the performance trends of the Vanguard Total Bond Market Index Fund, and learn which times of the year that the fund has performed its best and worst.
InvestingPart 3 of Investopedia's Warren Buffett trivia series.
Mutual Funds & ETFsExplore the returns of the Dodge & Cox Balanced Fund since 2012, as well as the seasonal trading patterns when the fund registers its largest gains and losses.
Bunny market describes a stock market that does not have an obvious ...
Davos man/Davos woman refers to the members of the World Economic ...
File and suspend is a Social Security claim strategy that allows ...
An IRS Form sent to individuals who received minimum essential ...
An IRS form sent to anybody who received health insurance coverage ...
A statistical measure used to describe the distribution of observed ...
Discover the differences between money market accounts and money market funds, including minimum balance requirements, withdrawal ... Read Answer >>
Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
Learn about the basic types of money market funds and discover how they are characterized by the types of investments that ... Read Answer >>
The first step in planning for long-term goals is actually determining how much you spend on short-term expenses. Once you ... Read Answer >>
Learn what large-cap stocks are and how investors can benefit from common advantages of adding large-cap stocks to their ... Read Answer >>
There's really no pre-determined age when it suddenly becomes necessary to take out a life insurance policy. However, if ... Read Answer >>