Fama french Samenvattingen, Aantekeningen en Examens

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central...

Test Bank for Corporate Finance: A Focused Approach 8th Edition 8e by Michael C. Ehrhardt; Eugene F. Brigham. ISBN 4638 Full Chapters test bank included Chapter 1: An Overview of Financial Management and the Financial Environment 1-1 The Five-Minute MBA 1-2 Finance From 40,000 Feet Above 1-3 The Corporate Life Cycle 1-4 Governing a Corporation 1-5 An Overview of Financial Markets 1-6 Types of Claims on Future Cash Flows: Financial Instruments, Financial Assets, and Financial Sec 1-7...

I got an 8 for the Investments exam by studying my own summary and practising the tutorial questions.

CAIA Level II Exam Questions and Answers 100% Solved What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - ANSWER-Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - ANSWER-Macroeconomic factors, fundamental/sty...

What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - ANSWER-Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - ANSWER-Macroeconomic factors, fundamental/style/investment/dynamic factors, and statistical factors...

CAIA Level II Questions and Answers 100% Accurate What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. Macroeconomic factors, fundamental/style/investment/d...

Your buyer client, percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? correct answers Obtain a pre-qualification letter What effect does a pre-approval letter have on an offer? correct answers It assures the seller that the buyer's financial information has been verified All lenders have different underwriting standards, but traditionally, the housing debt-to-income ratio has been _____%, with a total debt...

What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? correct answersMulti-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. correct answersMacroeconomic factors, fundamental/style/investment/dynamic factors, and statist...

What does CAPM do? correct answersCharacterizes equilibrium rates of return. describes risk-return relationship for individual assets. Empirical tests of CAPM show: large stocks and growth stocks (low book-to-market ratios) earn... correct answerslower returns than predicted by CAPM. Empirical tests of CAPM show: small stocks and value stocks (high book-to-market ratios) earn... correct answershigher returns than predicted by CAPM. Relative to small stocks, large stocks are correct answ...

Intuition of the Black-Derman-Toy interest rate model - ANSWER-Observed spot rates drive rate levels while implied rate volatilities drive rate spreads Understanding the intuition of imposing these two conditions helps in understanding the essence of the BDT model. The spot rates in the currently observed term structure drive the overall levels of the rates that are projected throughout the binomial tree. The implied volatilities of options trading on short‐term rates (i.e., interest rate c...

liquid alternatives - ANSWER-Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to earn substantial illiquidity premiums. constrained clone - A liquid investment fund that seeks to replicate the strategy of an existing alternative investment but imposes some constraint (e.g....