Hi, The examiner report stated that the yield on UK equity portfolio has a high yield ratio (120%~). Could someone help to explain on this, what is yield ratio? Thank you so much.
Hi, Whew - that goes back a bit! Yes the examiner mentioned that the yield ratio was high, which I think means that the yield of the equity portfolio in the question is 120% of the approximate yield of the equity market at the time of the exam (which was presumably around 3%). So the portfolio contains high yield shares compared to the average. I dont think knowledge of the UK equity market is as likely to be tested in SA7, which aims to have a more global feel.
