- This topic has 119 replies, 17 voices, and was last updated Dec-238:54 am by christine.
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@SidMenon’s post on Scrabble got me thinking – can we play a game right on this forum? I had a quick think and search online and may have something that will help CFA prep at the same time (at the risk of sounding too much like an after school special… :D)
If this goes well, the benefits of playing the game would be:
1. An increasing knowledge of CFA terms and definitions
2. Forum pointsA win-win! I start the game by stating and defining a particular CFA Term:
White knight: A third party that is sought out by the target company’s board to purchase the target in lieu of a hostile bidder.
The next person (i.e. the next person to reply to this thread) will have to take the last three letters of my Term (in this case G-H-T from ‘white kniGHT’) and their CFA term has to start with any of these letters (so maybe he/she would define ‘Treynor-Black model’). And so on and so forth.
RULES
1. Honour code – try not to Google things up beforehand, give it a go at trying to come up with a Term from memory.
2. You can’t reply to your own Term – you’ll have to wait for someone else to reply first. i.e. I can’t reply to this first post, but if someone else chips in I then can reply to that one.
3. If you like a particular Term, you can send the player a little love and points by liking that reply.
4. A winner will eventually be announced – either after a certain time, or a certain number of replies, we’ll tally up each persons Terms and points earned and see who the leaders are.So the next person’s Term has to start with G, H or T – and no using ‘Treynor-Black Model’ 😀
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@AJFinance – preferably for Sharpe Ratio you should include a definition of the formula! e.g.
And to continue the game…
Sunk Cost: A cost that have been incurred and are unrecoverable no matter what business decision is made. Commonly used in NPV/IRR project evaluation CFA questions.
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Exchange Traded Fund: A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.
ETFs trade throughout whole day, so prices are always updated, while mutual funds only have a price at the close of the day. ETFs are also cheaper use compared to mutual funds.
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Growth Investing – Investment strategy that focuses on investing in equities with relatively high fundamental ratios like P/E,P/B . In short, a security that is priced high relative to earnings or assets. The relatively low earnings compared to price indicates high earnings growth potential.
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@AJFinance gets an extra like from me for pointing that out – didn’t see that either 😀
Continuing:
Information coefficient
The correlation between forecast and actual values – used to demonstrate or analyse the skill of financial analysts -
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Gamma: A numerical measure of how sensitive an option’s delta (rate of change of value) is to a change in the underlying asset. Gamma is highest when option is at the money (ATM) and lowest when far in the money or out of money.
Also, gamma radiation is responsible for this jolly green giant.
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Legal and Regulatory constraints : One of the constraints to consider while drafting an IPS for a client. It is exactly what the name suggests, and serves to inform and guide the portfolio manager with respect to the Legal constraints of the client, if any. (Mostly Legal and Regulatory constraints are with respect to institutional investors)
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(Sorry dunno how to paste a photo of the formula in?)
@mattjuniper there is a button which looks like a photo in the formatting box – use that to insert photos. You can also insert hyperlinks and so on!
Key rate duration: Method of measuring the interest rate sensitivities of a fixed-income instrument or portfolio to shifts in key points along the yield curve.
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On the run / off the run treasuries.
On the run treasuries – is the latest or most frequently traded treasury securities of its maturity. They are the most liquid securities.
Off the run treasuries – The moment new treasury security of any maturity is issued then existing securities become off the run securities. This securities tend to be less liquid. 🙂
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Tankan survey one of the most talked about or written about term in asian economy especially Japan.
Well its an economic survey of the companies of japan issued by their central bank which is then used to formulate their monetary policies.
Wow, don’t recall seeing this, good to know!
bloomberg.com/news/2013-04-01/japanese-stocks-fall-as-manufacturer-sentiment-misses-estimates.html
Here’s the link, I just happened to read the same, so sent you one.
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