LOMA 357 - INSTITUTIONAL INVESTING UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
absolute return fund
Answer:
A fund option or mutual fund that seeks to achieve positive returns in all market
conditions by investing in alternative investments and derivatives, and employing
alternative investment management techniques. [5]
Question:
accountability
Answer:
For institutional investors, the obligation of an organization to be responsible to
its stakeholders for the results of its actions. [3]
Question:
active portfolio management
Answer:
A broad category of portfolio management strategies that involves constantly
researching opportunities to add value to a portfolio by making trades and
replacing existing assets with new ones. [3]
Question:
In debt restructuring in Europe and certain other countries outside the United
States, a legal proceeding under which an insolvent company makes a plan to pay
its creditors, in full or in part, and remain in operation. Known as reorganization in
the United States and some other countries. [8]
Answer:
administration
Question:
agency MBS
Answer:
A security based on a portfolio of residential mortgages that meet the guidelines
as to credit quality, underwriting standards, and other risk factors set by one of
several US government agencies. Also known as an agency mortgage-backed
security. [9]
Question:
analysis effect
Answer:
For debt investment portfolios, the share of excess bond portfolio returns
attributable to the manager's bets around trading in under- or overvalued debt
securities. [7]
, Question:
analyst
Answer:
An investment professional responsible for monitoring issuers of securities and
making buy-hold-sell recommendations as to future trading activity. [1]
Question:
anchor tenant
Answer:
In a shopping center, a major department store or store from a major retail chain
that will attract customers to the center. [9]
Question:
annualized return
Answer:
For investments, a variation on a rate of return calculation that expresses a return
for a period longer than a year as a rate of return for one whole year. Also known
as a yearly rate of return or an annual rate of return. [4]
Question:
appraisal
Answer:
In real estate, an estimate of a property's value as of a given date, determined by
a qualified professional known as an appraiser. [9]
Question:
arithmetic mean annual return
Answer:
The average return of a series of annual investment returns during a multi year
holding period. [4]
Question:
asset adequacy analysis
Answer:
In asset-liability management for insurance companies, an analysis of the
adequacy of reserves and other liabilities being tested, in light of the assets
supporting those reserves and other liabilities; a broad actuarial practice
undertaken to ensure that the assets backing reserves meet established
standards. [7]
Question:
asset allocation
Answer:
In portfolio management, the percentage distribution of all portfolio holdings
across a specified array of asset classes, such as various subcategories of stocks
and bonds. Also known as asset mix. [1]
Question:
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
absolute return fund
Answer:
A fund option or mutual fund that seeks to achieve positive returns in all market
conditions by investing in alternative investments and derivatives, and employing
alternative investment management techniques. [5]
Question:
accountability
Answer:
For institutional investors, the obligation of an organization to be responsible to
its stakeholders for the results of its actions. [3]
Question:
active portfolio management
Answer:
A broad category of portfolio management strategies that involves constantly
researching opportunities to add value to a portfolio by making trades and
replacing existing assets with new ones. [3]
Question:
In debt restructuring in Europe and certain other countries outside the United
States, a legal proceeding under which an insolvent company makes a plan to pay
its creditors, in full or in part, and remain in operation. Known as reorganization in
the United States and some other countries. [8]
Answer:
administration
Question:
agency MBS
Answer:
A security based on a portfolio of residential mortgages that meet the guidelines
as to credit quality, underwriting standards, and other risk factors set by one of
several US government agencies. Also known as an agency mortgage-backed
security. [9]
Question:
analysis effect
Answer:
For debt investment portfolios, the share of excess bond portfolio returns
attributable to the manager's bets around trading in under- or overvalued debt
securities. [7]
, Question:
analyst
Answer:
An investment professional responsible for monitoring issuers of securities and
making buy-hold-sell recommendations as to future trading activity. [1]
Question:
anchor tenant
Answer:
In a shopping center, a major department store or store from a major retail chain
that will attract customers to the center. [9]
Question:
annualized return
Answer:
For investments, a variation on a rate of return calculation that expresses a return
for a period longer than a year as a rate of return for one whole year. Also known
as a yearly rate of return or an annual rate of return. [4]
Question:
appraisal
Answer:
In real estate, an estimate of a property's value as of a given date, determined by
a qualified professional known as an appraiser. [9]
Question:
arithmetic mean annual return
Answer:
The average return of a series of annual investment returns during a multi year
holding period. [4]
Question:
asset adequacy analysis
Answer:
In asset-liability management for insurance companies, an analysis of the
adequacy of reserves and other liabilities being tested, in light of the assets
supporting those reserves and other liabilities; a broad actuarial practice
undertaken to ensure that the assets backing reserves meet established
standards. [7]
Question:
asset allocation
Answer:
In portfolio management, the percentage distribution of all portfolio holdings
across a specified array of asset classes, such as various subcategories of stocks
and bonds. Also known as asset mix. [1]
Question:
