Sharpe ratio uses what - Study guides, Class notes & Summaries

In constructing a point and Figure chart, a new entry is added only when? Price has moved equal to or more than the specified box size When the Stochastic indicator crosses below 20, it is signaling? The price is vulnerable to a reversal, but no action needs to be taken just yet. Brainpower Read More What principle describes a characteristic of related cycles Harmonics What formation is often called a coil? Symmetrical Triangle Bullish support lines on a 3-box...

Define investment - Answer Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - Answer Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - Answer Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investments - Answer ...

CFA Level 1 Quantitative Methods Exam 318 Questions with Answers Three ways interest rates can be thought of - CORRECT ANSWER First, they can be considered required rates of return—that is, the minimum rate of return an investor must receive in order to accept the investment. Second, interest rates can be considered discount rates. In the example above, 5.26 percent is that rate at which we discounted the $10,000 future amount to find its value today. Thus, we use the terms "interest r...

A 68 year-old client of yours indicates that he is interested in changing the portfolio mix of his IRA to become largely invested in noninvestment grade bonds. You would probably infer from this that the client: - ANSWER-A) has insufficient retirement savings. Most studies have indicated that seniors with insufficient retirement savings attempt to compensate by being tempted to reach for higher yields to maximize retirement income without full consideration of the increased risk that comes a...

CAIA Volume 1 Final Exam 2023 Define investment - CORRECT ANSWER-Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - CORRECT ANSWER-Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - CORRECT ANSWER-Hedge funds, Private Equity, and Structured Products Name the five structures that differe...

CFA Level 3 Exam 204 Questions with Answers 2023 bounded rationality - CORRECT ANSWER individuals act as rationally as possible but are constrained by a lack of knowledge and cognitive ability satisfice - CORRECT ANSWER making a reasonable but not necessarily optimal decision the price is right - CORRECT ANSWER asset prices reflect and instantly adjust to all available information weak-form efficiency - CORRECT ANSWER prices inncoporate all past price and volume data semi-strong...

CFA Level 1 – 101 All Must Knows. 100% Coverage & Mastery. Rated A+ Document Content and Description Below CFA Level 1 – 101 All Must Knows. 100% Coverage & Mastery. Rated A+ Addition Rule of Probability - ☑☑ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - ☑☑Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - ☑☑Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (...

Reasons to use derivatives - answer-1. To manage/reduce risk 2. To speculate - like placing a bet on what will happen in the future 3. To reduce transaction costs 4. To minimize taxes/avoid regulatory issues Market order - answer-a request to buy or sell a stock at the current market price - advantage: can immediately own or sell the stock disadvantage: the price could move more favorably in the future Limit order - answer-An order to a broker to buy a specific stock only if its price ...

Consider the following limit order book of a specialist in a market that allows partial execution of orders. The last trade in the stock took place at a price of $35. Bid Bid Qty Ask Qty Ask 34.75 100 800 35.25 34.25 100 1,000 35.50 33.50 400 2,000 35.75 32.25 200 800 36.00 You place a market sell order for 150 shares. What are your proceeds and what is the new stock price? A) $5; 187:50 ; $34:75 B) $5; 187:50 ; $34:25 C) $5; 325:00 ; $35:00 D) $5; 287:50 ; $35:25 E) $5; 287:50 ; $3...

David, a senior analyst with a brokerage firm, decides to change his recommendation for the common stock of Pigeon Industries, Inc. from a "buy" to a "sell". This change in investment advice is mailed to all the firm's clients on Wednesday. Next day, a client calls in with a buy order for 500 shares of Pigeon Industries, Inc. In this circumstance, Johnson should: -ANSWER Advise the customer of the change in recommendation before accepting the order. The mosaic theory holds that an ana...