SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CFA Level2 Vocab
Start Test
Study First
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 original time to maturity on a swap.
Tenor
Merger
Fundamentals
Normal distribution
2. An estimate of the equity risk pre-mium that is based upon estimates provided by a panel of finance experts.
Dividend payout policy
Dividend displacement of earnings
Direct f'mancing lease
Survey approach
3. 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
Money-weighted rate of return
Absolute dispersion
Theory of contestable markets
PEG ratio
4. Options that - if exercised - would result in the value received being worth more than the payment required to exercise.
Return on equity (ROE)
Yield to maturity
In-the-money
Normal contango
5. A model that specifies an asset's value relative to the value of another asset.
Combination
Conditional heteroskedasticity
Retail method
Relative valuation models
6. The price paid to buy an asset.
Dividend discount model (DDM)
Pooling of interests accounting method
Foreign currency transactions
Entry price
7. Revenue that has been earned but not yet billed to customers as of the end of an accounting period.
Cost of equity
Enterprise value (EV)
Credit analysis
Unbilled revenue (accrued revenue)
8. The set of assets available for investment.
Opportunity set
Ordinary shares (common stock or common shares)
Spreadsheet modeling
Nonconventional cash flow
9. Earnings for a given time period - minus a deduction for common shareholders' opportunity cost in generating the earnings.
Residual income (or economic profit or abnormal earnings)
Box spread
Continuing residual income
Liquidity
10. ID) With respect to random variables - the property of ran-dom variables that are independent of each otherbut follow the identical probability distribution.
Independent and identically distributed (l
Estimation
Fundamental factor models
Lessor
11. Under U.S. GAAP - a measure used in estimating a defined-benefit pen-sion plan's liabilities - defined as 'the actuarial present value as of a date of all benefits attributed by the pension benefit formula to employee ser-vice rendered prior to that
Purchased in-process research and development costs
Tender offer
Projected benefit obligation
Estimated (or fitted) parameters
12. In accounting contexts - cash on hand (e.g. - petty cash and cash not yet deposited to the bank) and demand deposits held in banks and similar accounts that can be used in payment of obligations.
Factor
Synthetic put
Cash
U.S. interest rate differential
13. A legal contract specifYing the terms of a bond issue.
Transactions motive
Merger
Unearned revenue (deferred revenue)
Bond indentnre
14. A valuation ratio calculated as price per share divided by sales per share.
American
Price to sales
Discrete time
Company share-related factors
15. The sale by a foreign firm of exports at a lower price than the cost of production.
Marketability discount
Cash flow from operations (cash flow from operating activities or operating cash flow)
Dumping
Sampling
16. The relationship between the price of the underlying and an option's exercise price.
P Value
Hedging
Cost of preferred stock
Moneyness
17. The value of exports of goods and ser-vices minus the value of imports of goods and services.
Tender offer
Receivables turnover
Net exports
Return on common equity (ROCE)
18. The cost to a com pany of issu-ing preferred stock; the dividend yield that a com-pany must commit to pay preferred stockholders.
Paired comparisons test
Cost of preferred stock
Indexing
Elasticity
19. A decision rule for choos-ing between two investments based on their means and variances.
Strategic transaction
Markowitz decision rule
Anticipation stock
Solvency
20. The risk of a change in value between the transaction date and the settlement date of an asset or liability denominated in a for-eign currency.
Conglomerate merger
Transaction exposure
Molodovsky effect
Common size statements
21. A factor related to the econ-omy - such as the inflation rate - industrial produc-tion - or economic sector membership. acroeconomic factor model A multifac tor model in which the factors are surprises in macroeco-nomic variables that significan tly
Centralization permits economies of scale and allows a company to use some of its risks to offset other risks.
Macroeconomic factor
Statistically significant
Dispersion
22. A descriptive measure computed from or used to describe a population of data - convention-ally represented by Greek letters.
Losses
Cash equivalents
Parameter
Merger
23. The yield to maturity on a basis that ignores compounding.
Bond-equivalent yield
Performance guarantee
Creative response
First-differencing
24. With respect to financial statement analy-sis - the ability of a company to fulfill its long-term obligations.
Consolidation
Out-of-the-money
Special purpose entity (special purpose vehicle or variable interest entity)
Solvency
25. A bar chart of data that have been grouped into a frequency distribution.
Histogram
Swap spread
Stock grants
Forward rate agreement (FRA)
26. In the context of corporate finance - leverage refers to the use of fixed costs within a company's cost structure. Fixed costs that are operating costs (such as depreciation or rent) create operating leverage. Fixed costs that are financial costs (su
Duration
Leverage
Credit derivatives
Time-weighted rate of return
27. A bank commitment to extend credit up to a pre-specified amount; the commitment is considered a short-term liability and is usually in effect for 364 days (one day short of a full year).
Asset beta
Committed lines of credit
Enhanced derivatives products companies (EDPC)
Debt-to-capital ratio
28. In the fixed income markets - to price a security on the basis of valuation-relevant char-acteristics (e.g. - debt-rating approach).
Matrix pricing
Mismatching strategy
Definition of value (or standard of value)
Direct f'mancing lease
29. The cash flow that is real-ized because of a decision; the changes or incre-ments to cash flows resulting from a decision or action.
Nominal rate
Incremental cash flow
Settlement date or payment date
Time-weighted rate of return
30. A valuation indicator based on past pdce movement.
Defensive interval ratio
Catalyst
Price momentum
Benchmark
31. An option on the yield spread on a bond.
Position trader
Credit spread option
J oint probability function
Underlying
32. In reference to mergers - it is the savings achieved through the consolidation of operations and elimination of duplicate resources.
Economies of scale
Multiplication rule for probabilities
Winsorized mean
Capitalized cash flow model (method)
33. The company's total cost of capital in money terms.
Capital charge
Market share test
Cyclical businesses
Laddering strategy
34. With respect to double-entry accounting - a debit records increases of asset and expense accounts or decreases in liability and owners' equity accounts.
Negative serial correlation
Population variance
Direct f'mancing lease
Debit
35. The expected total e b urn on an asset over a stated olding period; for stocks - the sum of tne expected dividend yield and the expected price appreciation over the holding period.
Exp ected holding-period return
Purchased in-process research and development costs
Translation exposure
Target semideviation
36. The competitive strategy of offeringunique products or services along some dimen-sions that are widely valued by buyers so that thefirm can command premium prices.
Stock purchase
Differentiation
ackwardation
Floored swap
37. A time series that is not covariance station-ary is said to have a unit root.
Unit root
Forward price or forward rate
Cost approach to value
Shareholders' equity
38. An estimate of the average time that elapses between paying suppliers for materi-als and collecting cash from the subsequent sale of goods produced.
Net operating cycle
Segment turnover
Current cost
Economic exposure
39. A stock's current mar-ket price divided by the most recent four quarters of earnings per share.
Operating activities
Trailing P/E (or current PIE)
Multivariate distribution
Bond option
40. The process of using an option to buy or sell the underlying.
Safety stock
Exercise or exercising the option
Delta
Conditional probability
41. A variation of the market approach; establishes a value estimate based on the observed multiples from trading activity in the shares of public companies viewed as reasonably comparable to the subject private company.
Differentiation
Passive strategy
Guideline public company method
Proportionate consolidation
42. 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
Inverse price ratio
Discount rate
Equity method
Solvency ratios
43. A multivariate classification technique used to discriminate between groups - such as companies that either will or will not become bankrupt during some time frame.
Constant maturity swap or
Discrintinant analysis
Point estimate
Cash settlement
44. An inventory accounting method in which the sales value of an item is reduced by the gross margin to calculate the item's cost.
Return on equity (ROE)
Retail method
Leptokurtic
Statement of changes in shareholders' equity (state-ment of owners' equity)
45. A condition in the futures markets in which the benefits of holding an asset exceed the costs - leaving the futures price less than the spot price.
ackwardation
Translation exposure
Active portfolio
Bernoulli trial
46. A solvency ratio calculated as total debt divided by total assets.
Conglomerate merger
Debt-to-assets ratio
Balance sheet ratios
Dividend discount model (DDM)
47. The expected return in excess of the risk-free rate for a portfolio with a sensitivity of 1 to one factor and a sensitivity of 0 to all other factors.
Sample statistic or statistic
Adjusted R2
Goodwill
Factor risk premium (or factor price)
48. A contract in which one party has the right to claim a payment from another party in the event that a specific credit event occurs over the life of the contract.
Momentum indicators
Credit derivatives
Market price of risk
Payment date
49. A method for estimating a company's before-tax cost of debt based upon the yield on comparably rated bonds for maturities that closely match that of the company's existing debt.
Debt rating approach
Shark repellents
Service period
Present value (PV)
50. Under IFRS - the liability of a defined benefit pension.
Sample statistic or statistic
Cost of carry model
Defined benefit obligation
Economic order quantity-reorder point
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
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests