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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. 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.






2. 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.






3. The tendency of a time series to fall when its level is above its mean and rise when its level is below its mean; a mean-reverting time series tends to re turn to its long-term mean.






4. Future benefits promised to the employee regardless of continuing service. Bene-fits typically vest after a specified period of service or a specified period of service combined with age.






5. Equity shares that are subordinate to all other types of. equity (e.g. - p refe rred equi ty) .






6. The positive square root of the variance; a measure of dispersion in the same units as the original data.






7. A spontaneous form of credit in which a purchaser of the goods or service is financing its purchase by delaying the date on which payment is made.






8. An account that offsets another account.






9. The excess of assets over liabilities; the residual interest of shareholders in the assets of an entity after deducting the entity's liabilities.

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10. Provision for a return of invest-ment - net of value appreciation.






11. The ratio of gross profi t to revenues.






12. The annual percentage change in real CDP.






13. The set of assets available for investment.






14. The risk associated with accounting standards that vary from country to country or with any uncertainty about how certain transac-tions should be recorded.






15. A comparison of revenues with working capital to produce a measure that shows how efficiently working capital is employed.






16. The single-period interest rate for a completely risk-free security if no infla-tion were expected.






17. Valuation indicators that relate either price or a fundamental (such as earnings) to the time series of their own past val-ues (or in some cases to their expected value).






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






19. Company growth in output or sales that is achieved by making investments internally (i.e. - excludes growth achieved through mergers and acquisitions).






20. A trader holding a position open some-what longer than a scalper but closing all posi-tions at the end of the day.






21. The residuals from a fitted time-series model within the sample period used to fit the model.






22. The annual return that an investor earns on a bond if the investor purchases the bond today and holds it until maturity.






23. An interest rate swap in which one party pays a fixed rate and the other pays a float-ing rate - with both sets of payments in the same currency.






24. Time thought of as advancing in extremely small increments.






25. The return on a portfolio minus the return on the portfolio's benchmark.






26. The application of a set of criteria to reduce a set of potential investments to a smaller set having certain desired characteristics.






27. The return on an asset in excess of the asset's required rate of return; the risk-adjusted return.






28. The probability-weighted average of the possible outcomes ofa random variable.






29. 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.






30. A portfolio having factor sensitiv-ities that are matched to those of a benchmark or other portfolio.






31. A bar chart of data that have been grouped into a frequency distribution.






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






33. An option that gives the holder the right to buy an underlying asset from another party at a fixed price over a specific period of time.






34. An inventory account-ing method that identifies which specific inventory items were sold and which remained in inventory to be carried over to later periods.






35. Aka Harmonic mean.






36. In reference to assets - the amount paid to purchase an asset - including any costs of acquisition and! or preparation; with reference to liabilities - the amount of proceeds received in exchange in issuing the liability.






37. The process by which options and other derivatives are priced by treating investors as though they were risk neutral.






38. The time between settlement dates.






39. The financial state-ment that presents an entity's current financial position by disclosing resources the entity con-trols (its assets) and the claims on those resources (its liabilities and equity claims) - as of a particular point in time (the date






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






41. CMT A hypothetical U.S. Treasury note with a constant maturity. A CMT exists for various years in the range of 2 to






42. To reduce the value of a future payment in allowance for how far away it is in time; to calcu-late the present value of some future amount. Also - the amount by which an instrument is priced below its face value.






43. The relationship between option price and volatility.






44. An arrangement whereby a customer authorizes a debit to a demand account; typically used by companies to collect routine pay-ments for services.






45. The pro-portion of the ownership of a subsidiary not held by the parent (controlling) company.






46. The rule that - on the average - with no change in technology - a 1 percent increase in capital per hour of labor brings a 1/3 percent increase in labor productivity.






47. A swaption that allows the holder to enter into a swap as the fixed-rate payer and floating-rate receiver.






48. A value at or below which a stated fraction of the data lies.






49. With reference to estimators - describes an estimator for which the probability of estimates close to the value of the population parameter increases as sample size increases.






50. The probability of an event given (conditioned on) another event.