Do you want BuboFlash to help you learning these things? Click here to log in or create user.

Tags

#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4

Question

The most important variables for demand is [...].

Answer

the item’s own price

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

We first analyze demand. The quantity consumers are willing to buy clearly depends on a number of different factors called variables. Perhaps the most important of those variables is the item’s own price.

We first analyze demand. The quantity consumers are willing to buy clearly depends on a number of different factors called variables. Perhaps the most important of those variables is the item’s own price. In general, economists believe that as the price of a good rises, buyers will choose to buy less of it, and as its price falls, they buy more. This is such a ubiquitous observation that

Tags

#i-q #types-of-inteligence

Question

[...], e.g. patterns and designs, painting, drawing, active imagination, sculpture, colour schemes.

Answer

Visual=spatial

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

Visual=spatial, e.g. patterns and designs, painting, drawing, active imagination, sculpture, colour schemes.

Tags

#cfa-level-1 #fra-introduction #study-session-7

Question

Reading 24 in study session 7 explores the [...] conceptual framework and the movement towards global convergence of financial reporting standards.

Answer

International Accounting Standards Board’s

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

Reading 24 in study session 7 explores the roles of financial reporting standard-setting bodies and regulatory authorities. The International Accounting Standards Board’s conceptual framework and the movement towards global convergence of financial reporting standards are also described.

nd accounting accruals. The presentation of financial information to the public by a company must conform to applicable financial reporting standards based on factors such as the jurisdiction in which the information is released. <span>The final reading in this study session explores the roles of financial reporting standard-setting bodies and regulatory authorities. The International Accounting Standards Board’s conceptual framework and the movement towards global convergence of financial reporting standards are also described. <span><body><html>

#has-images #reading-7-discounted-cashflows-applications

When analyzing rates of return, our starting point is the **total return**, or **holding period return (HPR)**. HPR measures the total return for holding an investment over a certain period of time, and can be calculated using the following formula:
*Example*

- P
_{t}= price per share at the end of time period t - P
_{(t-1)}= price per share at the end of time period t-1, the time period immediately preceding time period t - P
_{t}- P_{t-1}= price appreciation of the investment - D
_{t}= cash distributions received during time period t: for common stock, cash distribution is the dividend; for bonds, cash distribution is the coupon payment.

- It has an element of time attached to it: monthly, quarterly or annual returns. HPR can be computed for any time period.
- It has no currency unit attached to it; the result holds regardless of the currency in which prices are denominated.

A stock is currently worth $60. If you purchased the stock exactly one year ago for $50 and received a $2 dividend over the course of the year, what is your holding period return?

R_{t} = ($60 - $50 + $2)/$50 = 0.24 or 24%

The return for time period t is the **capital gain** (or loss) plus distributions divided by the beginning-of-period price (**dividend yield**). Note that for common stocks the distribution is the dividend; for bonds, the distribution is the coupon payment.

The holding period return for any asset can be calculated for any time period (day, week, month, or year) simply by changing the interpretation of the time interval.

Return can be expressed in decimals (0.05), fractions (5/100), or as a percent (5%). These are all equivalent.

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

#has-images #reading-7-discounted-cashflows-applications

The **dollar-weighted rate of return** is essentially the internal rate of return (IRR) on a portfolio. This approach considers the *timing* and *amount*of cash flows. It is affected by the timing of cash flows. If funds are added to a portfolio when the portfolio is performing well (poorly), the dollar-weighted rate of return will be inflated (depressed).

The **time-weighted rate of return** measures the compound growth rate of $1 initial investment over the measurement period. *Time-weighted*means that returns are averaged over time. This approach is not affected by the timing of cash flows; therefore, it is the preferred method of performance measurement.

*Example*

Jayson bought a share of IBM stock for $100 on December 31, 2000. On December 31, 2001, he bought another share for $150. On December 31, 2002, he sold both shares for $140 each. The stock paid a dividend of $10 per share at the end of each year.

To calculate the dollar-weighted rate of return, you need to determine the timing and amount of cash flows for each year, and then set the present value of net cash flows to be 0: - 100 - 140/(1 + r) + 300/(1 + r)^{2} = 0. You can use the IRR function on a financial calculator to solve for r to get the dollar-weighted rate of return: r = 17%.

To calculate the time-weighted rate of return:

- Split the overall measurement period into equal sub-periods on the dates of cash flows. For the first year:
- beginning price: $100
- dividends: $10
- ending price: $150

- beginning price: $300 (150 x 2)
- dividends: $20 (10 x 2)
- ending price: $280 (140 x 2)

- Calculate the holding period return (HPR) on the portfolio for each sub-period: HPR = (Dividends + Ending Price)/Beginning Price - 1. For the first year, HPR
_{1}: (150 + 10)/100 - 1 = 0.60. For the second year, HPR_{2}: (280 + 20)/300 - 1 = 0. - Calculate the time-weighted rate of return:
- If the measurement period < 1 year, compound holding period returns to get an annualized rate of return for the year.
- If the measurement period > 1 year, take the geometric mean of the annual returns.

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

#has-images #reading-7-discounted-cashflows-applications

Pure discount instruments such as T-bills are quoted differently than U.S. government bonds. They are quoted on a **bank discount basis** rather than on a price basis:

- r
_{BD}= the annualized yield on a bank discount basis - D = the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P
- t = the number of days remaining to maturity
- 360 = the bank convention of the number of days in a year.

- It is based on the face value, not on the purchase price. Instead, return on investment should be measured based on cost of investment.
- It is annualized using a 360-day year, not a 365-day year.
- It annualizes with simple interest and ignores the effect of interest on interest (compound interest).

- P
_{0}= the initial price of the instrument - P
_{1}= the price received for the instrument at its maturity - D
_{1}= the cash distribution paid by the instrument at its maturity (that is, interest).

Note that HPY is computed on the basis of purchase price, not face value. It is not an annualized yield.

The **effective annual yield** is the annualized HPY on the basis of a 365-day year. It incorporates the effect of compounding interest.

**Money market yield** (also known as **CD equivalent yield**) is the annualized HPY on the basis of a 360-day year using simple interest.

*Example*

An investor buys a $1,000 face-value T-bill due in 60 days at a price of $990.

- Bank discount yield: (1000 - 990)/1000 x 360/60 = 6%
- Holding period yield: (1000 - 990)/990 = 1.0101%
- Effective annual yield: (1 + 1.0101%)
^{365/60}- 1 = 6.3047% - Money market yield: (360 x 6%)/(360 - 60 x 6%) = 6.0606%

- EAY = (1 + HPY)
^{365/t}- 1 - r
_{MM}= HPY x 360/t

- HPY = ( 1 + EAY)
^{t/365}- 1 - r
_{MM}= [(1 + EAY)^{t/365}- 1] x (360/t)

- HPY = r
_{MM}x (t/360) - EAY = (1 + r
_{MM}x t/360)^{365/t}- 1

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

#has-images #reading-7-discounted-cashflows-applications

The convention is to double it and call the result the bond's yield to maturity. This method ignores the effect of compounding semi-annual YTM, and the YTM calculated in this way is called a **bond-equivalent yield** (**BEY**).

However, yields of a semi-annual-pay and an annual-pay bond cannot be compared directly without conversion. This conversion can be done in one of the two ways:

- Convert the bond-equivalent yield of a semi-annual-pay bond to an annual-pay bond.
- Convert the equivalent annual yield of an annual-pay bond to a bond-equivalent yield.

- A Eurobond pays coupon annually. It has an annual-pay YTM of 8%.
- A U.S. corporate bond pays coupon semi-annually. It has a bond equivalent YTM of 7.8%.
- Which bond is more attractive, if all other factors are equal?

- Convert the U.S. corporate bond's bond equivalent yield to an annual-pay yield:
- Annual-pay yield = [1 + 0.078/2]
^{2}- 1 = 7.95% < 8% - The Eurobond is more attractive since it offers a higher annual-pay yield.

- Convert the Eurobond's annual-pay yield to a bond equivalent yield (BEY):
- BEY = 2 x [(1 + 0.08)
^{0.5}- 1] = 7.85% > 7.8% - The Eurobond is more attractive since it offers a higher bond equivalent yield.

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

Question

A physiological attempt to maintain constant blood flow despite changes in blood/perfusion pressure

Answer

Autoregulation

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

Question

The brain uses CO which induces _____ and increased perfusion

Answer

vasodilation

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

Question

In fisica con **teoria della relatività** si intendono in generale le trasformazioni matematiche che devono essere applicate alle descrizioni dei fenomeni fisici nel passaggio tra due sistemi di riferimento in moto relativo tra loro, secondo il principio di relatività.

Answer

[default - edit me]

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

l'enciclopedia libera. Vai a: navigazione, ricerca [imagelink] Disambiguazione – "Relatività" rimanda qui. Se stai cercando il principio di relatività, vedi Principio di relatività. <span>In fisica con teoria della relatività si intendono in generale le trasformazioni matematiche che devono essere applicate alle descrizioni dei fenomeni fisici nel passaggio tra due sistemi di riferimento in moto relativo tra loro, secondo il principio di relatività. L'espressione è usata anche nel linguaggio comune per riferirsi alle teorie della relatività ristretta o della relatività generale di Einstein, in quanto esempi più noti del principio

Question

Che cos'è la teoria della relatività?

Answer

In fisica con **teoria della relatività** si intendono in generale le trasformazioni matematiche che devono essere applicate alle descrizioni dei fenomeni fisici nel passaggio tra due sistemi di riferimento in moto relativo tra loro, secondo il principio di relatività.

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

l'enciclopedia libera. Vai a: navigazione, ricerca [imagelink] Disambiguazione – "Relatività" rimanda qui. Se stai cercando il principio di relatività, vedi Principio di relatività. <span>In fisica con teoria della relatività si intendono in generale le trasformazioni matematiche che devono essere applicate alle descrizioni dei fenomeni fisici nel passaggio tra due sistemi di riferimento in moto relativo tra loro, secondo il principio di relatività. L'espressione è usata anche nel linguaggio comune per riferirsi alle teorie della relatività ristretta o della relatività generale di Einstein, in quanto esempi più noti del principio

#duchowy #formacja #psychologia #rozwojowa #rozwój #wychowanie #wzrost

Zastosuj „metodę kanapki”: **[...]**

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

Tags

#reading-7-discounted-cashflows-applications

Question

The **effective annual yield** is the annualized HPY on the basis of a **[...]**

Answer

365-day year.

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

#13; Since a pure discount instrument (e.g., a T-bill) makes no interest payment, its HPY is (P 1 - P 0 )/P 0 . Note that HPY is computed on the basis of purchase price, not face value. It is not an annualized yield. <span>The effective annual yield is the annualized HPY on the basis of a 365-day year. It incorporates the effect of compounding interest. Money market yield (also known as CD equivalent yield) is the annualized HPY on the basis of

#discounted-cashflow-applications

The **money-weighted rate of return** has a serious drawback. Generally, clients determine when money is given to the investment manager and those decisions may significantly influence the **money-weighted rate of return**.

status | not read | reprioritisations | ||
---|---|---|---|---|

last reprioritisation on | reading queue position [%] | |||

started reading on | finished reading on |

The money-weighted rate of return has a serious drawback. Generally, clients determine when money is given to the investment manager and those decisions may significantly influence the money-weighted rate of return . A general principle of evaluation, however, is that a person or entity should be judged only on the basis of their own actions, or actions under their control. An evaluation tool should