In a Growing Business That Keeps Its Asset Base Up-To-Date

question 56

Multiple Choice

In a growing business that keeps its asset base up-to-date, total cash flow from investing activities will normally be:

• A)more than cash flow from operations.
• B)negative.
• C)positive.
• D)none of the above.

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Definitions:

Portfolio Durations

A measure of the sensitivity of the price of a portfolio to a change in interest rates, often used to manage interest rate risk.

Comparison Universe

A set of similar investment options or benchmarks used for evaluating the performance or characteristics of a specific investment.

Jensen Measure

A performance evaluation method that measures the excess returns a portfolio generates over its expected return, given its level of market risk.

Absolute Measure

A term used in finance to describe a statistical measure that is not relative but quantifies an actual amount or change.