Page 14 - FINAL CFA I SLIDES JUNE 2019 DAY 11
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Session Unit 11:
38. Working Capital Management
LOS 38.e: Calculate and interpret comparable yields on various securities, compare portfolio returns
against a standard benchmark, and evaluate a company’s short-term investment policy guidelines., p.85
.
tanties
• In QM, the bond equivalent yield was defined differently as two
times the effective semi-annual yield.
• Returns on the firm’s short-term securities investments should
be stated as bond equivalent yields. The return on the portfolio
should be expressed as a weighted average of these yields.
