FMVA UPDATED ACTUAL Exam Questions and CORRECT Answers

FMVA UPDATED ACTUAL Exam
Questions and CORRECT Answers
Annuity - CORRECT ANSWER - Series of payments in equal time periods, guaranteed
for a fixed number of years


Annuity Factor - CORRECT ANSWER - Present value of $1 for each of t periods



Arithmetic Mean - CORRECT ANSWER - An average calculated by adding the value of
the points in a data set and dividing the sum by the number of data points.


Constant Perpetuity - CORRECT ANSWER - A constant stream of identical cash flows
without end


Correlation - CORRECT ANSWER - A statistical measure of how two securities move in
relation to each other


Coupon Rate - CORRECT ANSWER - The amount of interest received by a bond investor
expressed on a nominal annual basis.


Covariance - CORRECT ANSWER - A statistical measure of the variance of two random
variables that are observed or measured in the same mean time period.


Current Yield - CORRECT ANSWER - The coupon from a bond divided by the market
price of the bond, expressed as a percentage.


Discount Factor - CORRECT ANSWER - Percentage rate required to calculate the present
value of a future cash flow