This preview shows page 1. Sign up to view the full content.
Unformatted text preview: When the total return on an investment is expressed on a per year basis it is called the : effective annual return The dividend yield is defined as the annual dividend expressed as a percentage of the initial price Which one of the following should be used to compare the overall performance fo the three different investments effective annual return Increase volatility recently has caused market participants to question the reliability of the normal distribution for extreme moves. This is called Fat Tails A frequency distribution which is completely defined by its average and standard deviation is referred to as a normal distribution The rate of return earned on a US Treasury bill is referred to as the risk free rate. Value at risk has come under pressure as a model because it understates the risk associated with fat tails LTCM stands for Long Term Capital Management...
View
Full
Document
 Winter '11
 Crampton

Click to edit the document details