Across
- 2. It is a measure of volatility or systematic risk, of security/ portfolio in comparison to the market. It is used in the capital asset pricing model to calculate the expected return of an asset
- 4. The yield is the income return on an investment, such as the interest or dividends received from holding a particular security.
- 5. Loss in the value of assets due to obsolescence or new technology
- 7. Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future.
- 8. A long term security yielding a fixed rate of interest
- 11. A debt instrument in which an investor loans money to an entity for a defined period at a fixed or variable interest rate
- 12. Fixed sum of money paid to someone each year
Down
- 1. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.
- 3. A security with a price that is dependent upon or derived from underlying asset(s). The derivative is a contract between two or more parties based upon the asset(s). It includes commodities, currencies, etc.
- 6. Rate at which the central bank lends to the commercial banks
- 9. Receiving something of value in exchange for an obligation to pay back
- 10. With this method, assets are measured at their gross book value rather than at net book value to produce a higher return on equity (ROE). It is also known as DuPont identity
