1
Q
Value Additivity arbitrage opportunity arises when:
A
the value of the whole
does not equal
the value of the parts
2
Q
Dominance arbitrage opportunities arise when:
A
one asset trades at lower price than another asset
w/ identical characteristics
3
Q
Arbitrage free valuation is an approach to security valuation that arrives at a price that is:
A
arbitrage free
4
Q
Arbitrage is riskless profit with:
A
zero investment
5
Q
Which valuation method is best for MBS?
A
Monte Carlo
since it provides the flexibility to change parameters
CFA Level II
flashcards
Decks in class (33)
# Cards
-
1: Multiple Regression6
-
2: Time Series Models4
-
3: Machine Learning22
-
4: Big Data15
-
5: Currency Exchange Rates8
-
6: Economic Growth22
-
7: Economics of Regulation6
-
9: Employee Compensation6
-
11: Analysis of Financial Institutions8
-
12: Evaluating Quality of Financial Reports4
-
15: Analysis of Dividends & Share Repurchases4
-
16: ESG Considerations in Investment Analysis14
-
17: Cost of Capital11
-
18: Corporate Restructuring19
-
19: Equity Valuation7
-
20: DDM1
-
21: Free Cash Flow Valuation2
-
22: Price & EV Multiples2
-
23: Residual Income3
-
25: Term Structure & Interest Rate Dynamics5
-
26: Arbitrage Free Framework5
-
27: Bonds w/ Embedded Options8
-
28: Credit Analysis Models13
-
29: CDS4
-
31: Valuation of contingent claims6
-
32: Real Estate5
-
33: Private Equity15
-
34: Commodities15
-
36: Multifactor Models7
-
37: Measuring & Managing Market Risk10
-
39: Economics & Investment Markets4
-
40: Active Portfolio MGMT7
-
43: Trading Costs & Electronic Markets14
