Test your basic knowledge |

CFA Level2 Vocab

Subjects : certifications, cfa
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Each component put option in a floor.






2. A type of finance lease - from a lessor perspective - where the present value of the lease payments (lease receivable) equals the carry-ing value of the leased asset. The revenues earned by the lessor are financing in nature.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


3. Dummy variables used as dependent variables rather than as inde-pendent variables.






4. With respect to the format of a bal-ance sheet - a format in which assets - liabilities - and equity are listed in a single column.






5. The value of skills and knowledgepossessed by the workforce.






6. A hypothesis concern-ing pricing behavior that holds that even though there are only a few firms in an industry - they are forced to price their products more or less com-petitively because of the ease of entry by outsiders. The key aspect of a conte






7. CreaLing a contrac t with standard and generally accepted terms - which makes it moreacceptable to a broader group of participants.






8. Depreciatiolil methods that allocate a relatively large proportion of the cost of an asset to the early years of the asset's useful life.






9. A company that has similar business risk; usually in the same industry and preferably with a single line of business.






10. The amount available for fixed costs and profit after paying variable costs; rev-enue minus variable costs.






11. With respect to inventory accounting - the planned or target unit cost of inventory items or services.






12. An investment decision rule that states that an investment should be undertaken if its NPV is positive but not undertaken if its NPV is negative.






13. The prooability of an observation - given a par ticular set of conditions.






14. A purchase involving a buyer that would benefit from certain synergies associ-ated with owning the target firm.






15. Uncertainty with respect to the quantity of goods and services that a company is able to sell and the price it is able to achieve; the risk related to the uncertainty of revenues.






16. The percentage of total earnings paid out in dividends in any given year (in per-share terms - DPS/ EPS).






17. A country that is borrowing more from the rest of the world than it is lending to it.






18. The earnings growth rate in a company's mature phase; an earnings growth rate that can be sustained long term.






19. A legal restriction that dividends cannot exceed retained earnings.






20. The sample autocorrela-tions of the residuals.






21. The theory that managers take into account how their actions might be inter-preted by outsiders and thus order their prefer-ences for various forms of corporate financing. Forms of financing that are least visible to out-siders (e.g. - internally gen






22. A type of weighted mean computed by averaging the reciprocals of the ohservations - then taking the reciprocal of that average.






23. A multifactor model In which statistical methods are applied to a set of historical returns to determine portfolios that best explain either historical return covariances or vanances.






24. The minimum real wage rate needed to maintain life.






25. The absorption of one company by another; two companies become one entity and one or both of the pre-merger companies ceases to exist as a separate entity.






26. A model for pricing options in which the underlying price can move to only one of two possible new prices.






27. The proportion of a company's assets that is financed with long-term debt.






28. Unsecured short-term corporate debt that is characterized by a single payment at maturity.






29. The combination of the underlying - puts - calls - and risk-free bonds that replicates a forward contract.






30. A trader who offers to buy or sell futures contracts - holding the position for only a brief period of time. Scalpers attempt to profit by buy-ing at the bid price and selling at the higher ask price.






31. The amount at which an asset or liability is valued according to account-ing principles.






32. The amount of money a buyer pays and seller receives to engage in an option transaction.






33. The quantity of real CDP pro-duced by an hour of labor.






34. A random variable hav-ing the outcomes 0 and 1.






35. 1) The simultaneous purchase of an undervalued asset or portfolio and sale of an over-valued but equivalent asset or portfolio - in order to obtain a riskless profit on the price differential. Taking advantage of a market inefficiency in a risk-free






36. Under U.S. GAAP -a special purpose entity structured to avoid consol-idation that must meet qualification criteria.






37. The combining of the results of oper-ations of subsidiaries with the parent compaIL y to present financial statements as if they were a sin-gle economic unit. The asset - iabilities - revenues and expenses of the subsidiaries are combined with those






38. The relationship of the quantity of an asset being hedged to the quantity of the deriva-tive used for hedging.






39. A forecasting approach that involves aggregating the individual company forecasts of analysts into industry fore-casts - and finally into macroeconomic forecasts.






40. Risk for which investors demand com-pensation for bearing (e.g. - equity risk - company-specific factors - macroeconomic factors).






41. Above average or abnormally high growth rate in earnings per share.






42. A regression estimation technique that addresses heteroskedasticity of the error term.






43. An arrangement whereby someone - an agent - acts on behalf of another per-son - the principal.






44. Correlation between adj acent observations in a time ser ies.






45. A condition in the futures markets in which a transaction cannot take place because the price would be beyond the limits.






46. The part of the execution step of the portfolio manage-ment process in which investment strategies are integrated with expectations to select a portfolio of assets.






47. All members of a specified group.






48. A rule explaining the uncon-ditional probability of an event in terms of proba-bilities of the event conditional on mutually exclusive and exhaustive scenarios.






49. Internal or external limita-tions on investments.






50. The P/E to-growth ratio - calculated as the stock's PI E divided by the expected earnings growth rate.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests