Real Assets- Factories, Cars, anything that needs
financial assets to be created
Financial Assets- Cash, loans, stocks. Any
nonphysical financial tool or monetary tool.
Price-weighted average: Computed by adding prices of stocks and dividing by divisor (D
N= time in years
I%= YTM
Zero coupon YTM= 0 in PMT, alpha ENTER in I%
Flat price= Rate over par value x par value
PMT= coupon rate in dollars
Annual Coupon Payment
of payments per yr
Accrued Interest =
HPR= (end price-beg price+cash div.)/beg price
o In
John Schoenneman
UIN: 662-33-9485
Exam Question 6: Simpsons Paradox
1. From the aggregate data it seems that the school has a higher acceptance rate of women as
opposed to men, but when you look at the detailed data, the trend is reversed and a higher
per
The bid price is the price a dealer is willing to pay you for something.
o
The ask price is the amount a dealer wants you to pay for something.
o
the bid-ask spread is the difference between the bid and ask prices.
Bid/ask price
example
You are a US port
*Planned purchase at retail price
o = Planned Sales for the month + Planned Retail Reductions
for the month + Planned EOM stock for the month - Planned
BOM stock for the month
*Planned purchase at cost
o = Planned purchase at retail for the month X (100
Money market Hedge=To hedge a foreign currency payable, buy the present value of that
foreign currency payable today and put it in the bank at interest.(2) Buy the present value of the
foreign currency payable today at the spot exchange rate. (3)Invest t
Money Market
instruments
Separating the legal entity-A corporation is a business entity, legally separate from its owners and employees
Features
Stock holders have limited liability regarding the corps debt
Requires CFO to verify statements
Of corps
Inde
Control Limits
K= # of samples
n= sample size
mu= know population mean
sigma= known population standard deviation
mu-hat= estimated sample mean = x double bar
x-double bar= average of sample means
s-bar= average of sample standard deviations
r-bar= averag
Control Limits
K= # of samples
n= sample size
mu= know population mean
sigma= known population standard deviation
mu-hat= estimated sample mean = x double bar
x-double bar= average of sample means
s-bar= average of sample standard deviations
r-bar= averag