1St Cfa Test Glossary H

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another word for haircut

Back 1

repo margin

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harmonic mean

Back 2

a type of weighted mean computed by averaging the reciprocals of the observations, then taking the reciprocal of that average

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head and shoulders pattern

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in technical analysis, a reversal pattern that is formed in three parts; a left shoulder, head and right shoulder
- used to redict a change from an uptrend to a downtrend

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headline inflation

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the inflation rate calculated based on teh price index that includes all goods and services in an economy

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hedge funds

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private investment cehicles that typically use leverage, derivatives and long and short investment strategies

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hedge portfolio

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a hypothetical combination of the derivative and its underlying that eliminates risk

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held for trading

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debt or equity financial assets bought with the intetnion to sell them in the near term, usually less than three months;
securities that a company intends to trade

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what is held for trading also called

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trading securities

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held to maturity

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debt (fixed income) securities that a company intends to hold to maturity
- presented at their original cost, updated for any amortization of discounts or premiums

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herding

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clustered trading that may or may not be based on information

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hidden order

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an order that is exposed not to the public but only to the brokers or exchanged tha treceive it

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high water marks

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the highest value, net of fees which a fund has reached. It reflects the highest cumulative return used to calculate an incentive fee

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histogram

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a bar chart of data that have been grouped into a frequency distribution

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historical cost (2)

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in reference to assets, the amount paid to purchase an asset including any costs of acquisition and/ or preparation
with reference to liabilities the amound of proceeds received in exchange in issuing the liability

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historical equity risk premium approcach

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an estimate of a country's equity risk premium that is based upon the historical averages of the risk free rate and teh rate of return on the market portfolio

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historical simulation

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another term for historical method of estimating VAR.
- the method involves not a simulation of the past but rather what actually happend in the past, sometimes adjusted to reflect that a differnt portfolio may have existed in the past than planneed in the future.

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holding period return

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the return that an investor earns during a specified holding period

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what is a synonym for holding period return

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total return

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holding period yield

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the return that an investor earns during a specified holding period
- holding period return with reference to a fixed income instrument

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homogeneity of expections

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the assumption that all investors have the same economic expectations and thus have the same expectations of prices, cash flows and other investment characteristics

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horizon yield

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the internal rate of return between the total return (the sum of reinvested coupon payments and the sale price or redemption amount.

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horizontal analysis

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- common-size analysis that involves comparing a specific financial statement with that statement in prior or future time periods
- also cross-sectional analysis of one company with one another

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horizontal demand schedule

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implies that an a given price the response in the quantity demanded is infinite

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household

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a person or a group of people living in the same residence, taken as a basic unit in economic analysis

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hurdle rate

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the rate of return that must be met for a project to be accepted

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hypothesis

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with reference to statistical inference, a statement about one or more populations

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hypothesis testing

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with reference to statistical inference, the subdvision dealing with the testing of hypotheses about one or more population yields.