 Shuffle Toggle OnToggle Off
 Alphabetize Toggle OnToggle Off
 Front First Toggle OnToggle Off
 Both Sides Toggle OnToggle Off
 Read Toggle OnToggle Off
Reading...
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
A key: Read text to speech.a key
Play button
Play button
28 Cards in this Set
 Front
 Back
In a positively skewed distribution, what is the order (from lowest value to highest) for the distribution’s mode, mean, and median values?

Mode, median, mean.


Mode

most frequently occuring number


median

middle number


mean

average


Sharpe Ratio

(Return PortfolioRisk Free Return)/Standard Deviation


Bank Discount Yield

(Discount/face)x( 360/days to maturity)


Holding Period Yeild

(End value/ Beginnning Value)1


Effective annual Yield

(1+HPY)^365/days1


Money Market Yield

HPYx(360/days to maturity)


geometric mean

(1.01*1.05*.95)^(1/3)


Harmonic Mean

Average Cost per share over time in constant dollar amounts.
2/ (1/20+1/25)=22.22 

varience

average of squared deviations from the mean


standard deviation

Square root of varience


chebyyshev's inequality

what % of oberservations must lie withing k standard deviations of the mean?
min%= 1(1/k^2) 

coefficient of variation

measure of risk per unit of return. lower the better
CV=standard deviation/mean 

Sharpe Ratio

Excess return per unit of risk...more the better.
Sharpe: (RpRf/Std. dev) 

leptokurtik

more peaked with more extreme outliers (kurtosis>3)


covarience

measure of how two variables move togehter


Correlation

measur of the linear relationship between two variables
Correlation= CovA, B/( Std Dev A, Std Dev B) 

central limit theorem

According to the central limit theorem, the mean of the distribution of sample means will be equal to the population mean. n > 30 is only required for distributions of sample means to approach normal distribution.


parameter

parameter is any descriptive measure of a population characteristic.


Bank Discount Yield Formula

he bank discount yield is computed by the following formula, r = (dollar discount / face value) × (360 / number of days until maturity)


formula for a binomial random variable

Use the formula for a binomial random variable to calculate the answer to this question. We will define "success" as the team winning a game. The formula is:
p(x) = P(X = x) = [number of ways to choose x from n] × px × (1  p)nx, where [number of ways to choose x from n] = n! / [(n  x)! × x!]. 

number of ways to choose x from n]

number of ways to choose x from n] = n! / [(n  x)! × x!].


Stratified random sampling.

In stratified random sampling, we first divide the population into subgroups based on some relevant characteristic(s) and then make random draws from each group.


Effective Annual Yeild Formula

(1 + HPY)365/t) − 1


probability distribution

The probability distribution may or may not reflect reality. But the probability distribution must list all possible outcomes, and probabilities can only have nonnegative values.


Bond Equivilant Yield

((1000purchase price)/purchase price)*(365/days to maturity)
