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 -

capitalism - Economic system in which private citizens own and use the factors of production in order to generate profits. command economy - Economic system characterized by a central authority that makes most of the major economic decisions.

Scarcity - A situation in which unlimited wants exceed the limited resources available to fulfill those wants Production Possibilities Frontier (PPF) - A curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology

allocative efficiency - when the mix of goods produced represents the mix that society most desires budget constraint - all possible consumption combinations of goods that someone can afford, given the prices of goods, when all income is spent; the boundary of the opportunity set comparative advantage -

circular flow diagram - factors of production - markets for goods and services -

Economics - the study of how humans make decisions in the face of scarcity Scarcity - human wants for goods, services and resources exceed what is available Division of labor -

Scarcity - Economics - Efficiency -

Scarcity - the limited nature of society's resources Economics - the study of how society manages its scarce resources Efficiency -

Gross Domestic Product (GDP) - ways to compute GDP Expenditure Approach - way to compute GDP-

Principle 1 - People face trade offs -Trade-offs are losing one quality or aspect of something in return for gaining another aspect or quality Principle 2 - The cost of something is what you give up to get it -Based on the idea that nothing is free -People make decisions based on cost and benefit

division of labor - economics - economies of scale -