Page 58 - FINAL CFA SLIDES DECEMBER 2018 DAY 11
P. 58
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 Quantitative Methods, 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.
