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Search results for 'return'

June 1, 2016

Expected Return on Plan Assets

Under U.S. GAAP assumed long-run rate of return on plan assets is used to smooth the volatility that would be caused by using actual returns. Under IFRS expected rate of return on plan assets is implicitly equal to the discount rate used for computing PBO.

May 30, 2016

Return on Capital Employed (ROCE)

Return on capital employed is a financial ratio that measures profitability. ROCE = EBIT / Capital Employed Capital Employed = Shareholders Equity + Debt or Capital Employed = Total Assets – Current Liabilities

April 10, 2016

The excess return is the sum of…

…the spot return and the roll return.

April 10, 2016

Expect Active Return Formula

Expected Active Return = (IC)√BR(Active Return Target) IC = Information Coefficient BR = Breadth

March 21, 2016

Higher Expected Return on Assets leads to ____ PBO and ____ Pension Expense

No change in the PBO Lower Pension Expense This applies to U.S. GAAP only.

January 10, 2016

The Arbitrage Pricing Model assumes returns are derived from a multi factor model?

TRUE

January 4, 2016

Hedge fund return distributions are often…

non-normal and generally exhibit negative skewness and positive excess kurtosis.

December 30, 2015

Returns on hedge fund indices have the following biases:

Selection Bias Survivorship Bias Backfill (or instant history) Bias

December 30, 2015

Equity Dividend Rate (cash-on-cash return)

equity dividend rate = (NOI – debt service) / equity

December 22, 2015

Expected return on plan assets affects reported pension expense but does not affect…

…pension benefit obligation PBO