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b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Divergent thinking [2]
Thinking that meets the criteria of originality, inventiveness, and flexibility and is directed at generating many possible solutions.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Convergent thinking [2]
Thinking that is directed toward one correct solution to a problem.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Mental Set [2]
The tendency to perceive and to approach problems in certain ways
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Functional Fixedness [2]
The tendency to perceive only a limited number of uses for an object, thus interfering with the process of problem solving.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Algorithm [2]
A step-by-step method of problem solving that guarantees a correct solution.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Heuristics [2]
Rules of thumb that help in simplifying and solving problems, although they do not guarantee a correct solution.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Compensatory model [2]
A rational decision-making model in which choices are systematically evaluated on various criteria .
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Representativeness [2]
A heuristic by which a new situate is judged on the basis of its resemblance to a stereotypical model.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Availability [2]
A heuristic by which a judgment or decision is based on information that is most easily retrieved from memory.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Confirmation bias [2]
The tendency to look for evidence in support of a belief and to ignore evidence that would disprove a belief.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Framing [2]
The perspective from which we interpret information before making a decision.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Hindsight bias [2]
The tendency to see outcomes as inevitable and predictable after we know the outcome.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Counterfactual thinking aili [2]
Thinking about alternative realities and things that never happened.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Intelligence [2]
A general term referring to the ability abilities involved in learning and adaptive behavior.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Triarchic theory of intelligence [2]
Stember's theory that intelligence involves mental skills( analytical intelligence), insight and creative adaptability ( creative intelligence), and environmental responsiveness (practical intelligence).
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Theory of multiple intelligences [2]
Howard Gardener's theory that there is not one intelligence, but rather many intelligences, each of which is relatively independent of the others.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Emotional intelligence [2]
According to Goleman, a form of intelligence that refers to how effectively people perceive and understand their own emotions and the emotions of others, and how well they can regulate and manage their emotional behavior.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Stanford-Binet Intelligence Scale [2]
Test of intelligence, developed from Binet and Simon's original scale, which set the average intelligence quotient(IQ) at 100
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Intelligence quotient(IQ) [2]
A numerical value given to intelligence that is determined from the scores on an intelligence test on the basis of a score of 100 for average intelligence.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Wechsler Adult Intelligence Scale-Third Edition (WAIS-III) [2]
An individual intelligence test developed especially for adult; measures both verbal and performance abilities.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Wechsler Intelligence Scale for children-Third Edition (WISC-III) [2]
An individual intelligence test developed especially for school-aged children; measures verbal and performance abilities and also yields and overall IQ score.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Group tests [2]
Written intelligence tests administered by one examiner to many people at one time.P
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Performance tests [2]
Intelligence tests that minimize the use of language.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Culture-fair tests [2]
Intelligence tests designed to eliminate cultural bias by minimizing skills and values that vary from one culture to another
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Reliability [2]
Ability of a test to produce consistent and stable scores.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Split-half reliability [2]
A method of determining test reliability by dividing the test into two parts and checking the agreement of score on both parts.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Validity [2]
Ability to a test to measure what it has been designed to measure.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Content Validity [2]
Refers to test's having and adequate sample of questions measuring the skills or knowledge it is supposed to measure.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Criterion-related-validity [2]
Validity of a test as measured by a comparison of the test score and independent measures of what the test is designed to measure.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Mental Retardation [2]
Condition of significantly average intelligence accompanied by deficiencies in adaptive behavior.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Giftedness [2]
Refers to superior IQ combined with demonstrated or ability in such areas as academic aptitude, creativity, and leadership.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
b6b087d9_hapter_5_Flashcards___Cram_com__2
[1] Creativity [2]
The ability to produce novel and socially valued ideas or objects.
[]
Chapter 5 Flashcards - Cram.com
2
http://www.cram.com/flashcards/chapter-5-1500199
42/1438042988310.3_20150728002308-00314-ip-10-236-191-2_377455483_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A market in which trades occur only at a particular time and place (i.e., when the market is called). [Call]
Call market
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The interest rate that buyers pay for their margin loan. [Call]
Call money rate
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Shares that give the issuing company the option (or right), but not the obligation, to buy back the shares from investors at a call price that is specified when the shares are originally issued. [Call]
Callable (or redeemable) common shares
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A price chart with four bits of data for each time interval. A candle indicates the opening and closing price for the interval. The body of the candle is shaded if the opening price was higher than the closing price, and the body is clear if the opening price was lower than the closing price. Vertical lines known as wi...
Candlestick chart
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Cannibalization occurs when an investment takes customers and sales away from another part of the company. [Call]
Cannibalization
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
1) A contract on an interest rate, whereby at periodic payment dates, the writer of the cap pays the difference between the market interest rate and a specified cap rate if, and only if, this difference is positive. This is equivalent to a stream of call options on the interest rate. 2) A combination of interest rate c...
Cap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A graph line that describes the combinations of expected return and standard deviation of return available to an investor from combining the optimal portfolio of risky assets with the risk-free asset. [Call]
Capital allocation line (CAL)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An equation describing the expected return on any asset (or portfolio) as a linear function of its beta relative to the market portfolio. [Call]
Capital asset pricing model (CAPM)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The allocation of funds to relatively long-range projects or investments. [Call]
Capital budgeting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An investor’s expectations concerning the risk and return prospects of asset classes. [Call]
Capital market expectations
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The line with an intercept point equal to the risk-free rate that is tangent to the efficient frontier of risky assets; represents the efficient frontier when a risk-free asset is available for investment. [Call]
Capital market line (CML)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Financial markets that trade securities of longer duration, such as bonds and equities. [Call]
Capital markets
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A capital rationing environment assumes that the company has a fixed amount of funds to invest. [Call]
Capital rationing
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The mix of debt and equity that a company uses to finance its business; a company’s specific mixture of long- term financing. [Call]
Capital structure
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Costs of inventories including costs of purchase, costs of conversion, other costs to bring the inventories to their present location and condition, and the allocated portion of fixed production overhead costs. [Call]
Capitalized inventory costs
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Each component call option in a cap. [Call]
Caplet
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A swap in which the floating payments have an upper limit. [Call]
Capped swap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A wholly-owned subsidiary of a company that is established to provide financing of the sales of the parent company. [Call]
Captive finance subsidiary
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The amount at which an asset or liability is valued according to accounting principles. [Call]
Carrying amount (book value)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A group of firms that has entered into a collusive agree- ment to restrict output and increase prices and profits. [Call]
Cartel
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
In accounting contexts, cash on hand (e.g., petty cash and cash not yet deposited to the bank) and demand deposits held in banks and similar accounts that can be used in payment of obligations. [Call]
Cash
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Accounting method in which the only relevant transactions for the financial statements are those that involve cash. [Call]
Cash basis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to days of inventory on hand [Call]
Cash conversion cycle (net operating cycle)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Very liquid short-term investments, usually maturing in 90 days or less. [Call]
Cash equivalents
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The principle that dollar amounts indexed at the same point in time are additive. [Call]
Cash flow additivity principle
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A variation of VAR that reflects the risk of a company’s cash flow instead of its market value. [Call]
Cash flow at risk (CFAR)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The net amount of cash provided from operating activities. [Call]
Cash flow from operations (cash flow from operating activities or operating cash flow)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A financial state- ment that reconciles beginning-of-period and end-of-period balance sheet values of cash; consists of three parts: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. [Call]
Cash flow statement (statement of cash flows)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A merger or acquisition that is to be paid for with cash; the cash for the merger might come from the acquiring company’s existing assets or from a debt issue. [Call]
Cash offering
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The price for immediate purchase of the underlying asset. [Call]
Cash price or spot price
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A liquidity ratio calculated as (cash [Call]
Cash ratio
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A procedure used in certain derivative transac- tions that specifies that the long and short parties engage in the equivalent cash value of a delivery transaction. [Call]
Cash settlement
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The difference between reported net income on an accrual basis and the cash flows from operating and investing activities compared to the average net operating assets over the period. [Call]
Cash-flow-statement-based accruals ratio
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The difference between reported net income on an accrual basis and the cash flows from operating and investing activities. [Call]
Cash-flow-statement-based aggregate accruals
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A measure of near-term market volatility as conveyed by S&P 500 stock index option prices. [Call]
CBOE Volatility Index
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A bank’s bank and a public authority that regulates the nation’s depository institutions and controls the quantity of money. [Call]
Central bank
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A result in statistics that states that the sample mean computed from large samples of size n from a population with finite variance will follow an approximate normal distribution with a mean equal to the population mean and a variance equal to the population variance divided by n. [Call]
Central limit theorem
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
When a company has a single risk management group that monitors and controls all of the risk-taking activities of the organization. Centralization permits economies of scale and allows a company to use some of its risks to offset other risks. (See also enterprise risk management.) [Call]
Centralized risk management or companywide risk management
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A forecasting process in which the next period’s value as predicted by the forecasting equation is substituted into the right-hand side of the equation to give a predicted value two periods ahead. [Call]
Chain rule of forecasting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A tenet of technical analysis that once a support level is breached, it becomes a resistance level. The same holds true for resistance levels; once breached, they become support levels. [Call]
Change in polarity principle
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A list of accounts used in an entity’s accounting system. [Call]
Chart of accounts
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A bond in which the amount received for delivering the bond is largest compared with the amount paid in the market for the bond. [Call]
Cheapest to deliver
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
When a bankrupt company is allowed to enforce contracts that are favorable to it while walking away from con- tracts that are unfavorable to it. [Call]
Cherry-picking
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A macroeconomist who believes that the economy is self- regulating and that it is always at full employment. [Call]
Classical
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A balance sheet organized so as to group together the various assets and liabilities into subcategories (e.g., current and noncurrent). [Call]
Classified balance sheet
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The bottom-line income reflects all changes in shareholders’ equity arising from other than owner transactions. In the absence of owner transactions, the change in shareholders’ equity should equal net income. No adjustments such as translation adjustments bypass the income statement and go directly to shareholders equ...
Clean-surplus accounting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Instructions that indicate how to arrange the final settlement (“clearing”) of a trade. [Call]
Clearing instructions
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An entity associated with a futures market that acts as middleman between the contracting parties and guarantees to each party the performance of the other. [Call]
Clearinghouse
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The preference some investors have for shares that exhibit certain characteristics. [Call]
Clientele effect
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A mutual fund in which no new investment money is accepted. New investors invest by buying existing shares, and investors in the fund liquidate by selling their shares to other investors. [Call]
Closed-end fund
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Netting the market values of all derivative con- tracts between two parties to determine one overall value owed by one party to another in the event of bankruptcy. [Call]
Closeout netting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The ratio of a set of observations’ standard deviation to the observations’ mean value. [Call]
Coefficient of variation (CV)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Describes two time series that have a long-term financial or economic relationship such that they do not diverge from each other without bound in the long run. [Call]
Cointegrated
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An option strategy involving the purchase of a put and sale of a call in which the holder of an asset gains protection below a certain level, the exercise price of the put, and pays for it by giving up gains above a certain level, the exercise price of the call. Collars also can be used to provide protection against ri...
Collar
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An agreement between two (or more) producers to restrict output, raise the price, and increase profits. [Call]
Collusive agreement
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A listing in which the order of the listed items does not matter. [Call]
Combination
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A method of allocating resources by the order (command) of someone in authority. In a firm a managerial hierarchy organizes production. [Call]
Command system
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Unsecured short-term corporate debt that is characterized by a single payment at maturity. [Call]
Commercial paper
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A bank commitment to extend credit up to a pre-specified amount; the commitment is considered a short-term liability and is usually in effect for 364 days (one day short of a full year). [Call]
Committed lines of credit
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A contract in which the underlying asset is oil, a precious metal, or some other commodity. [Call]
Commodity forward
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Futures contracts in which the underlying is a traditional agricultural, metal, or petroleum product. [Call]
Commodity futures
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An option in which the asset underlying the futures is a commodity, such as oil, gold, wheat, or soybeans. [Call]
Commodity option
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A swap in which the underlying is a commodity such as oil, gold, or an agricultural product. [Call]
Commodity swap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A type of security that represent an ownership interest in a company. [Call]
Common shares
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Financial statements in which all elements (accounts) are stated as a percentage of a key figure such as revenue for an income statement or total assets for a balance sheet. [Call]
Common size statements
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The restatement of financial statement items using a common denominator or reference item that allows one to identify trends and major differences; an example is an income statement in which all items are expressed as a percent of revenue. [Call]
Common-size analysis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Analysis of an individual company. [Call]
Company analysis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Factors related to the company’s internal performance, such as factors relating to earnings growth, earnings variability, earnings momentum, and financial leverage. [Call]
Company fundamental factors
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json