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Flashcards in Economics & Analysis Deck (54)
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1

Small businesses and individuals typically use the _______ accounting method

cash

2

Cash accounting records transactions on the date _______ is actually received

payment

3

Accrual accounting recognizes expenses based on the date the ______ is incurred

liability

4

Cash accounting recognizes revenue/expenses _____ than accrual accounting

later

5

Both sides of the balance sheet are arranged in order of _______

liquidity

6

CA/CL are due within ______

within 1 year

7

Accounts payable include:

AP, Wages, Taxes, and Interest (payable)

8

Long term capital =

LT liabilities + OE

9

D/E =

LT debt / total OE

10

10Ks are filed anywhere from ____ to ____ after year end

60 to 90 (larger companies with over $700m public float file within 60 days, smaller companies at 90 days)

11

10Qs are ______ and are filed anywhere from ____ to ______ after qarter-end

unaudited; filed anywhere from 40 to 45 days (bigger @ 40, smaller at 45)

12

Earned surplus is another name for _____

retained earnings

13

Falling inflation (measured via the CPI) will result in higher ____ prices and _____ prices

stock AND bond prices

14

Emerging growth stocks are brand new ventures that have high potential reward but NO _____ and typically can't pay _____

track record; typically can't pay dividends

15

A typical example of an income security is a ______ stock

utility

16

Counter-cyclical stocks include ______ and _____

food producers and gold mining stocks

17

Speculative stocks include _____ and ____ companies, they are ones that fly high during business cycle upturns

airplane manufacturers and toy companies

18

ROI is the ________ cash flow divided by the ______

average annual cash flow divided by the initial investment outlay

19

Total Return on an investment is =

income + growth

20

The Risk Free Rate is the expected return on _____

treasuries

21

The Sharpe Ratio =

(Total Return - RF) / Portfolio STdev

22

The higher the Sharpe ratio, the greater incremental reward for assuming _____

risk

23

The geometric mean takes into account ______ (when the ______ mean does not)

takes into account compounding, while the arithmetic mean does not

24

Expected Return is simply the _______ average of different scenarios

weighted average of different outcome scenarios

25

The shorter the holding period, the greater the _______

variability of returns (STdev)

26

Capital gains on munis are _____ taxable

fully (at Fed level too)

27

An active manager's "active return" is the % by which they ______ the index

outperform/underperform

28

Time-weighted returns are used by ______ and show the growth of a _____ investment over a fixed period of time

used by mutual funds, show growth of a 1-time investment over a fixed time period

29

Time-weighted return is the same as ______

total return

30

An investor's specific performance in a fund is the _______ return

dollar-weighted return