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Quantitative Eval
Quantitative Evaluation Measurements
| Question | Answer |
|---|---|
| Used to calculate the estimated return of an investment | Expected Return |
| Return that has been adjusted for inflation | Real Return |
| Rate of return calculated over the period of time an investor owns the security | Holding Period Return |
| Annual interest divided by the current market price | Current Yield |
| Return that includes an investments income and capital appreciation over a 1 year period | Total Return |
| A bonds return if held until the principal is repaid | Yield to Maturity |
| Used to calculate what $1000 would be worth if held 10 years at 8% | Future Value |
| Determined by dividing the difference between a security's actual return and the risk-free rate by its standard deviation | Risk-Adjusted Rate of Return |
| Calculated from cash flows of a specific investment | Internal Rate of Return |
| How much an investor must invest today to result in a retirement fund of $1 million in 20 years | Present Value |
| Toughest test of a company's liquidity | Quick Ratio |
| Theoretical liquidating value per share | Debt-to-equity Ratio |
| Sometimes called working capital ratio | Current Ratio |