CGFO FINANCIAL
ADMINISTRATION
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
Alpha - ANS-Measure of risk-adjusted performance
Beta - ANS-Measure of a fund's or a stock's risk in relation to the market or to an
alternative benchmark
Gamma - ANS-Ratio of a change in the option delta to a small change in the price of the
asset on which the option is written
PERS - ANS-Public Employee Retirement System
CAFR - ANS-Comprehensive Annual Financial Report
PERS CAFR - ANS-Comprehensive Annual Financial Report for a Public Employee
Retirement System
Yield - ANS-Percentage rate of return paid on a stock in the form of dividends, or he
effective rate of interest paid on a bond or note
, Yield Curve - ANS-Graphic depiction of the relationship between the yield on bonds of
the same credit quality but different maturities
Sharpe Ratio - ANS-Measure of a portfolio's excess return relative to the total
variability of the portfolio
Small-cap - ANS-A stock with a small capitalization, meaning a total equity value of
less than $500 million
Actuary - ANS-Person or company that estimates the value of claims pending and the
estimated reserves needed
Actuarial Valuation - ANS-Process of assessing the viability of a PERS
Defined Benefit Plan - ANS-Pension plan obliging the sponsor to make specified dollar
payments to qualifying employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - ANS-Pension plan where a sponsor is responsible only for
making specified contributions in to the plan on behalf of qualifying participants
Jensen Index - ANS-Uses the capital asset pricing model to determine whether a money
manager outperformed a market index
Return on Equity (ROE) - ANS-Indicator of profitability
Determined by dividing net income for the past 12 months by common stockholder
equity (adjusted for stock splits)
Investors use as a measure of how a company is using its money
Return on Investment (ROI) - ANS-Generally, book income as a proportion of net book
value
ADMINISTRATION
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
Alpha - ANS-Measure of risk-adjusted performance
Beta - ANS-Measure of a fund's or a stock's risk in relation to the market or to an
alternative benchmark
Gamma - ANS-Ratio of a change in the option delta to a small change in the price of the
asset on which the option is written
PERS - ANS-Public Employee Retirement System
CAFR - ANS-Comprehensive Annual Financial Report
PERS CAFR - ANS-Comprehensive Annual Financial Report for a Public Employee
Retirement System
Yield - ANS-Percentage rate of return paid on a stock in the form of dividends, or he
effective rate of interest paid on a bond or note
, Yield Curve - ANS-Graphic depiction of the relationship between the yield on bonds of
the same credit quality but different maturities
Sharpe Ratio - ANS-Measure of a portfolio's excess return relative to the total
variability of the portfolio
Small-cap - ANS-A stock with a small capitalization, meaning a total equity value of
less than $500 million
Actuary - ANS-Person or company that estimates the value of claims pending and the
estimated reserves needed
Actuarial Valuation - ANS-Process of assessing the viability of a PERS
Defined Benefit Plan - ANS-Pension plan obliging the sponsor to make specified dollar
payments to qualifying employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - ANS-Pension plan where a sponsor is responsible only for
making specified contributions in to the plan on behalf of qualifying participants
Jensen Index - ANS-Uses the capital asset pricing model to determine whether a money
manager outperformed a market index
Return on Equity (ROE) - ANS-Indicator of profitability
Determined by dividing net income for the past 12 months by common stockholder
equity (adjusted for stock splits)
Investors use as a measure of how a company is using its money
Return on Investment (ROI) - ANS-Generally, book income as a proportion of net book
value
