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. The extent to which a company's operations are predictable with substantial confidence.






2. Investments in which investors exert significant influence - but not con-trol - over the investee. Typically - the investor has 20 to 50 % ownership in the investee.






3. The rate of dividend (and earnings) growth that can be sustained over time for a given level of re turn on equity - keeping the capi tal structure constant and wi thout issuing addi tional common stock.






4. The dollar amount of cash divi-dends paid during a period per share of common stock.






5. A transaction in which a position in the underlying is protected by buying a put and selling a call with the premium from the sale of the call offsetting the premium from the purchase of the put. It can also be used to protect a floating-rate borrowe






6. The problem or issue of popu-lation regression parameters that have changed over time.






7. With reference to the presenta-tion of expenses in an income statement - the grouping together of expenses by similar nature - e.g. - all depreciation expenses.






8. Rules for portfolio selection that focus on the risk that portfolio value will fall below some minimum acceptable level over some time horizon.






9. A method for determining the required rate of return on equity as the sum ofrisk premiums - in which one or more of the risk premiums is typically subjective rather than grounded in a formal equilibrium model.






10. With reference to regression analysis - the estimated values of the population intercept and population slope coeffi-cien t(s) in a regression.






11. Essentially - the pur-chase of some asset by the buyer (lessee) that is directly financed by the seller (lessor).






12. The ratio of the market value of debt and equity to the replacement cost of total assets.

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


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






14. A number between - 1 and + 1 that measures the co-movement (linear association) between two random variables.






15. A minimum level of cash to be held available-estimated in advance and adjusted for known funds transfers - seasonality - or other factors.






16. Segment liabilities divided by segment assets.






17. The cash flow available to a company's common shareholders after all operat-ing expenses - interest - and principal payments have been made - and necessary investments in working and fixed capital have been made.






18. A dividend yield based on the anticipated dividend during the next 12 months.






19. Rate of return that dis-counts future cash flows from an investment to the exact amount of the investment; the discount rate that makes the present value of an invest-ment's costs (outflows) equal to the present value of the investment's benefits (in






20. A condition in the futures markets in which the price at which a transaction would be made is at or beyond the price limits.






21. The value of the middle item of a set of items that has been sorted into ascending or descending order; the 50th percentile.






22. With reference to equity investors - investors who are focused on paying a relatively low share price in relation to earnings or assets per share.






23. When settling a contract - the risk that one party could be in the process of paying the counterparty while the counterparty is declar-ing bankruptcy.






24. The amount charged for the delivery of goods or services in the ordinary activities of a business over a stated period; the inflows of eco-nomic resources to a company over a stated period.






25. With reference to the cash flow statement - a format for the presentation of the statement in which cash flow from operat-ing activities is shown as operating cash receipts less operating cash disburseme ts.






26. A formula that expresses the equivalence or parity of spot and forward rates - after adjusting for differences in the interest rates.






27. The allocation of funds to rela-tively long-range projects or investments.






28. A measure of dispersion relat-ing to a population - calculated as the mean of the squared deviations around the population mean.






29. Unex-pected earnings per share divided by the standard deviation of unexpected earnings per share over a specified prior time period.






30. Private equity investors in development-stage companies.






31. A basis for reporting investment income in which the investing entity recognizes a share of income as earned rather than as divi-dends when received. These transactions are typi-cally reflected in Investments in Associates or Equity Method Investment






32. A procedure used in certain deriva-tive transactions that specifies that the long and short parties engage in the equivalent cash value of a delivery transaction.






33. Ratios that measure how efficiently a company performs day-to-day tasks - such as the collection of receivables and management of inventory.






34. The difference between the observed value of a statistic and the quantity it is intended to estimate.






35. A financial statement that reconciles beginning-of-period and end-of-period balance sheet values of cash; consists of three parts: cash flows from oper-ating activities - cash flows from investing activities - and cash flows from financing activities






36. Potential future payments to the seller that are contingent on the achieve-ment of certain agreed on occurrences.






37. CMT swap A swap in which the floating rate is the rate on a security known as a constant maturity treasury or CMT security.






38. Observations that are depen-dent on each other.






39. Heteroskedasticity of the error term that is not correlated with the values of the independent variable(s) in the regression.






40. Financial instru-ments that an entity chooses to measure at fairvalue per lAS 39 or SFAS 159. Generally - the elec-tion to use the fair value option is irrevocable.






41. Lack of bias. A desirable property of estimators - an unbiased estimator is one whose expected value (the mean of its sampling distri-bution) equals the parameter it is intended to estimate.






42. Netting the market values of all derivative contracts between two parties to deter-mine one overall value owed by one party to another in the event of bankruptcy.






43. The analysis of portfolio performance in terms of the contribu-tions from various sources of risk.






44. An estimate of the country spread (country equity premium) for a develop-ing nation that is based on a comparison of bonds yields in country being analyzed and a developed country. The sovereign yield spread is the differ-ence between a government bo






45. The amount the company estimates that it can sell the asset for at the end of its useful life.






46. An approach to investment analysis and security selection.






47. A si gle numerical estimate of an unknown quantity - such as a population parameter.






48. Sales price less disposition costs - amortized mortgage loan bal-ance - and capital gains taxes.






49. The owners of a joint venture. Each is active in the management and shares control of the joint venture.






50. A merger involving the pur-chase of a target ahead of the acquirer in the value or production chain; for example - to acquire a supplier.







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