AWMA Test Questions and Answers 100% Solved

AWMA Test Questions and Answers 100% Solved Capital Market Line ️️A graphical representation of the relationship between risk and return, where risk is measured by standard deviation; the CML includes the concept of a risk-free rate of return Jenson Performance index ️️Used in comparing performance money managers on a riskadjusted basis and can be used by itself. A number above 0.00 indicates the manager had better performance than would be expected given the risk he took... vice versa How are Treynor and Sharpe indexes best used? ️️Both are used to compare the risk - adjusted returns on diff funds. The higher the risk-adjusted return, the better. The key diff is that Treynor uses Beta as its risk measure, so Treynor can only be used with fully diversified portfolios. Sharpe, uses Standard deviation (total risk) as its measure of risk so can only be used with either fully diversified or nondiversified portfolios Benefits of Buy and hold ️️returns at least as good as strategies based on technical analysis, low transactional costs, the deferral of capital gains taxes on profits, not missing the best days of the market Property' value ️️NOI/Cap Rate