Ewanga

Held-to-maturity - At cost on balance sheet; interest and realized gain/loss on income statement Available-for-sale - at FMW with unrealized gain/losses in equity on B/S; dividends, interest, realized gain/losses on I/S

What does 1.4126 USD/EUR mean? - What is a spot exchange rate? -

Cumulative Distribution Function (CDF) - distribution function, defines the probability that a random variable, X, takes on a value equal to or less than a specific value, x. Represents the sum, or cumulative value, of the probabilities of the outcomes up to and including a specific outcome. F(x) = P(X ≤ x)

Expected Return on a Portfolio - Composed of n assets with weights w and expected returns r Covariance of asset returns - Is a measure of how two assets move together. It is the expected value of the product of the deviations of the two random variables from their expected values

Can you initiate coverage on a company that is a potential client? - Yes - as long as the recommendation is not unjustifiably favorable Tender Offers - Mat., non-pub info -> can't use! To be GIPS compliant, a firm must adopt: - the broadest definition of the firm *presented annually, to all clients

Bond Indenture - Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants - Prohibitions on the borrower.

Default Risk - Risk that a borrower will not make promised payments Liquidity Risk - Risk of recieving less than fair value for an investment if it must be sold for cash quickly

Price Elasticity of Demand Formula - (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula - (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement)

Current Ratio - Current Assets divided by current liabilities Quick Ratio - Cash plus marketable securities plus receivables divided by current liabilities

Which of the following situations would lead to more starvation? A) a world where everyone grows his or her own food and there is no trade B) a world with trade and lots of specialization C) a world with immense division of knowledge D) a world where only some people specialize in food and everyone else produces something else -