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. A measure of th e yield on the undel~ ing bond of a futures contract implied by pricing it as though the underlying will be delivered at the futures expiration.
Implied yield
Balance-sheet-based accruals ratio
Statistically significant
Her rmdahl-
2. Aka Harmonic mean.
Interest rate parity
Liquidation value
Flexible exchange rate
Weighted harmonic mean
3. FIrm The cash flow available to the company's suppliers of capital after all operat-ing expenses (including taxes) have been paid and necessary investments in working and fixed capital have been made.
Cyclical businesses
Duration
Money market yield (or CD equivalent yield
Free cash flow to the
4. An amount equal to net taxes minus government expenditure on goods and services.
Net book value
Outcome
Seats
Government sector surplus or deficit
5. Income rate that reflects the relationship between equity income and equity capital.
Salvage value
Equity dividend rate
Short
Spurious correlation
6. The posi tive square root of tar-get semivar·ance.
Independent and identically distributed (l
Asset-based approach
Investment constraints
Target semideviation
7. Method of valu-ing property based on recen t sales prices of simi-lar properties.
Pure discount instruments
Gross domestic product
Direct sales-comparison approach
Definitive merger agreement
8. Plan in which the company promises to pay a certain annual amount (defined benefit) to the employee after retirement. The company bears the investment risk of the plan assets .
Conglomerate merger
Nondeliverable forwards (NDFs)
Defined-benefit pension plans
Conditional variances
9. A procedure of selecting every kth member until reaching a sample of the desired size. The sample that results from this procedure should be approximately random.
Value at risk (VAR)
Systematic sampling
Binomial model
Periodic rate
10. The property of having a non-constant variance; refers to an error term with the property that its variance differs across observations.
Residual claim
Autoregressive (AR) model
Heteroskedasticity
Earnings yield
11. With respect to hypothesis testing - the rule according to which the null hypothesis will be rejected or not rejected; involves the compari-son of the test statistic to rejection point(s).
Decision rule
Bernoulli random variable
Cost recovery method
Nonparametric test
12. The principle that dol-lar amounts indexed at the same point in time are additive.
Dividend discount model (DDM)
Equity swap
Provision
Cash flow additivity principle
13. The mix of a company's variable costsand fixed costs.
Investing activities
Dirty surplus items
Tax loss carry forward
Cost structure
14. A floating-rate note or bond in which the coupon is adjusted to move opposite to a benchmark interest rate.
Industry structure
Bond equivalent yield
Pure factor portfolio
Inverse floater
15. A method for accounting forthe effect of convertible securities on earnings pershare (EPS) that specifies what EPS would havebeen if the convertible securities had been con-verted at the beginning of the period - taking account of the effects of conv
If-converted method
Direct write-off method
Guideline public companies
Risk-neutral probabilities
16. A tabular display of data summarized into a relatively small number of intervals.
Root mean square(l er ror (RMSE)
Investment value
Flexible exchange rate
Frequency distribution
17. The sum of the sample observations - divided by the sampfe size.
Sample mean
Lockbox system
Estimated (or fitted) parameters
Logit model
18. All changes in equity other than contributions by - and distributions to - own-ers; income under clean surplus accounting; includes all changes in equity during a period except those resulting from investments by own-ers and distributions to owners;
Degree of total leverage
Comprehensive income
Exp ected holding-period return
Basic earnings per share (EPS)
19. The first in - first out - method of accounting for inventory - which matches sales against the costs of items of inventory in the order in which they were placed in inventory.
FIFO method
Accounts payable
Economic sectors
Sample excess kurtosis
20. The costs of holding an asset - generally a function of the physical char-acteristics of the underlying asset.
Storage costs or carrying costs
Sales
Accelerated methods of depreciation
Downstream
21. The average squared deviation below a target value.
Target semivariance
Dispersion
Definition of value (or standard of value)
Nonmonetary assets and liabilities
22. The U.S. interest rate minus the foreign interest rate.
Efficient portfolio
U.S. interest rate differential
Dirty surplus items
asis swap
23. The most frequently occurring value in a set of observations.
Active factor risk
Mode
Risk-neutral probabilities
Project sequencing
24. Quantiles that divide a distribution into five equal parts.
Sandwich spread
Type I error
Quintiles
Spread
25. The variable whose variationabout its mean is to be explained by the regres-sion; the left-hand-side variable in a regressionequation.
Write-down
Semilogarithmic
Exercise or exercising the option
Dependent variable
26. A portfolio with sensitivity of 1to the factor in question and a sensitivity of 0 to allother factors.
Available-for-sale investments
Shortfall risk
Pure factor portfolio
Intrinsic value or exercise value
27. The probability that an asset's value moves up.
Regulatory risk
Up transition probability
Discrete time
Foreign currency transactions
28. A long-term pattern of movement in a partic-ular direction.
Multiple linear regression model
Tracking error
Market price of risk
Trend
29. Valuation approach that values an asset as the present discounted value of the income expected from it.
Friendly transaction
Defined benefit obligation
Income approach
Delta
30. The required rate of return on com-mon stock.
Split-off
Exchange rate
Cost of equity
Outliers
31. The owners of a joint venture. Each is active in the management and shares control of the joint venture.
Venturers
Central limit theorem
Maintenance margin requirement
Local currency
32. 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.
Incremental cash flow
In-sample forecast errors
Screening
Total return swap
33. Carlo simulation method An approach to estimating a probability distribution of outcomes to examine what might happen if particular risks are faced. This method is widely used in the sci-ences as well as in business to study a variety of problems.
Unexpected earnings (also earnings surprise)
Monte
Cannibalization
Mean excess return
34. An approach to using price multiples that relates a price multiple to forecasts of fundamentals through a discounted cash flow model.
Method based on forecasted fundamentals
Laddering strategy
Book value of equity (or book value)
Equitizing cash
35. The amount available for fixed costs and profit after paying variable costs; rev-enue minus variable costs.
Contribution margin
Trade credit
Abandonment option
Debit
36. ROA) A prof-itability ratio calculated as operating income divided by average total assets.
Target capital structure
Operating return on assets (operating
Percentiles
Priced risk
37. A type of non-audited financial statements; typically provide an opinion letter with representations and assurances by the reviewing accountant that are less than those in audited financial statements.
Sample standard deviation
Reviewed fmancial statements
Unbilled revenue (accrued revenue)
Assets
38. The probability of an event not conditioned on another event.
Net liability balance sheet exposure
Accrual basis
Unconditional probability (or marginal probability)
Histogram
39. The allocation of funds to rela-tively long-range projects or investments.
Long-term contract
Capital budgeting
Common-size analysis
Caplet
40. The probability that an asset's value moves down in a model of asset price dynamics.
Dutch Book theorem
Down transition probability
Two-sided hypothesis test (or two-tailed hypothesis test)
Monetary assets and liabilities
41. Long-term assets with physical sub-stance that are used in company operations - such as land (property) - plant - and equipment.
Tangible assets
Dividend payout policy
Monetary assets and liabilities
Earnings management activity
42. A model for pncmg futurescontracts in which the futures price is determinedby adding the cost of carry to the spot price.
Cost of carry model
Target capital structure
Legislative and regulatory risk
Sample skewness
43. An extra return that compen-sates investors for the possibility that the borrower will fail to make a promised payment at the con-tracted time and in the contracted amount.
Company share-related factors
Default risk premium
Centralized risk management or companywide risk management
Transition phase
44. A reduction or discount to value that reflects the lack of depth of trading or liquid-ity in that asset's market.
Price limits
Outcome
Liquidity discount
Going-concern assumption
45. An option in which the holder has the right to make an unknown interest payment and receive a known interest payment.
Node
Bernoulli trial
Model specification
Interest rate put
46. The strategy of using futures contracts to enter the market without an immediate outlay of cash.
Fixed-rate perpetual preferred stock
Swaption
Pre-investing
Earnings expectation management
47. Futures contracts in which the underlying is a traditional agricultural - metal - or petroleum product.
Cash settlement
Unearned revenue (deferred revenue)
Commodity futures
Method based on forecasted fundamentals
48. The expected return on equi-ties minus the risk-free rate; the premium that investors demand for investing in equities.
Tenor
Enterprise value (EV)
Equity risk premium
Statistically significant
49. Provision for a return of invest-ment - net of value appreciation.
Recapture premium
Initial margin requirement
Seats
Mixed offering
50. The amount that each unit sold contributes to covering fixed costs- that is - the difference between the price per unit and the variable cost per unit.
Per unit contribution margin
Abandonment option
Asset purchase
Technical indicators
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