Portfolio Analysis Flashcards
7 cards from real ASC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Portfolio Analysis flashcards as text
In ARGUS Enterprise, which portfolio-level metric measures the ratio of total net cash distributions to total equity invested?
Answer: Equity Multiple (EM)
The equity multiple is calculated as total distributions divided by total equity invested, expressing how many times the investor's capital was returned.
When creating a portfolio in ARGUS Enterprise, what is the primary function of the 'Portfolio Currency' setting?
Answer: It sets the reporting currency into which all asset-level cash flows are converted for consolidated analysis
The Portfolio Currency setting defines the consolidated reporting currency, and ARGUS applies exchange rates to convert each asset's local cash flows for aggregated analysis.
A portfolio analyst notices that the blended DSCR for a 10-asset portfolio drops below 1.20x in Year 3. What does this indicate?
Answer: Net operating income is insufficient to cover debt service by the lender's required margin across the portfolio
A DSCR below 1.20x means portfolio NOI covers debt service but with less than the typical lender cushion, triggering potential covenant concerns.
In ARGUS Enterprise, which approach best handles a portfolio where assets have different acquisition dates?
Answer: Model each asset with its actual start date and use portfolio-level date alignment settings
ARGUS Enterprise supports staggered acquisition dates by modeling each asset independently and using portfolio-level date alignment to consolidate cash flows correctly.
What does the 'Weighted Average Cap Rate' at the portfolio level in ARGUS Enterprise represent?
Answer: The NOI-weighted blended cap rate reflecting the portfolio's relative income contribution from each asset
The weighted average cap rate weights each asset's cap rate by its proportional NOI contribution, reflecting the true blended pricing of the portfolio's income stream.
In a multi-asset ARGUS Enterprise portfolio with a promoted interest structure, when does the GP typically earn promote?
Answer: Only after LP investors have received their full preferred return and return of capital per the waterfall
GP promote (carried interest) is earned only after LPs have been made whole on their preferred return and return of capital, as defined in the waterfall structure.
Which ARGUS Enterprise feature allows a user to model the sale of individual assets at different times within a single portfolio analysis?
Answer: Staggered Disposition Dates
ARGUS Enterprise supports staggered disposition dates, allowing each asset in the portfolio to have a unique sale date while still consolidating returns at the portfolio level.