AAMS Exam with Questions and Answers

AAMS Exam with Questions and Answers Brinson Study ANSWER Concentrate on Asset Allocation and less on securities selection and market timing Eurodollar CD ANSWER US dollar denominated Instrument that is issued by foreign banks from their US branches T-Bills ANSWER Smallest std. deviation since 1926 Contingent deferred sales charge ANSWER Mutual fund sales load that is assessed on a decending scale if the fund is sold within the first 5 or six years of purchase If the market rate on coupon bonds similar to Bond A increases, Bond A's duration will ANSWER decrease A U.S. investor owns a bond denominated in Mexican pesos. If the bond earned 8% while the value of the peso increased against the U.S. dollar by 4%, the investor's total return was ANSWER increased 10% by the falling dollar. Which one of the following rates is most directly affected by the Federal Reserve Board? ANSWER Fed Funds Rate One assumption of technical analysis is that ANSWER stock prices move in trends.