Income Statement
An income statement helps you understand the ____ _____ of a company
Financial Health
The balance sheet presents a company’s financial position at __
A specific moment in time
This type of bond is issued by the U.S. federal government
Treasury bond
The “E” in ETF stands for this
Exchange
The importance of diversification is to
Reduce risk and minimize the impact of market fluctuations
This metric is a way of showing how much money investors earn for every share they own
EPS, or Earnings Per Share
Another name for the balance sheet
The statement of financial position
What does the Federal Reserve do?
Set short-term interest rates
These funds trade throughout the day on stock exchanges like individual stocks
Exchange-traded funds, or ETFs
The three types of asset allocation are
Strategic, Tactical, and Dynamic
The percentage of sales revenue that a company is able to convert into gross profit is this type of margin
Gross profit margin
Net debt is calculated by
Adding up all of a company's short- and long-term liabilities and subtracting its current assets.
In general, interest rates and bond yields have a __ relationship
Inverse
This calculation refers to the yearly fee percentage charged by mutual funds and ETFs to cover operating expenses
Expense ratio
The theory that governs modern portfolio construction
Modern Portfolio Theory
Price-to-Earnings or P/E tells us how __ a company is
Expensive
These asset investors tend to rely more on the balance sheet
Credit/Fixed income
This is the type of yield curve U.S. treasuries have right now
Inverted
Net asset value, or NAV, is
The price per share of a mutual fund, calculated at the end of each trading day
Effective diversification combines __-correlated assets to improve risk-adjusted returns
Negatively or lowly
EBITDA stands for
Earnings before interest, taxes, depreciation, and amortization
This ratio tells us how well a company can cover its short-term debt
Current ratio
Four factors to consider before buying a bond include
Any of these four: federal interest rates, macroeconomic conditions, duration, fundamental lender situation, sentiment, and more
Three of the primary differences between mutual funds and ETFs are
Any of these three:
ETFs trade intra-day, ETFs are more tax efficient, ETFs tend to have lower fees, ETFs are more liquid, ETFs don’t have investment minimums, and more
Describe one way we can boost the returns of a portfolio while reducing its volatility
Answers may vary: add higher returning assets even if it has higher volatility, diversify, etc.