Rebalancing Study guides, Class notes & Summaries

Which of the following are correct statements about the capital utilization strategy? - correct answer I. It produces an annual retirement income over a finite number of years. II. Assuming the yield remains the same, the larger the retirement income that is paid, the shorter the number of years over which it will be paid. III. When the capital utilization approach is used, the planner must be careful in making assumptions about the life expectancy of the client. IV. The effect of taxes on ...

Markov Chain - Answer-A multiple state model that is memorlyess Memoryless - Answer-Probability that the process is an any given state at some future date depends only on the current state, not on the history of the process Boundary Conditions - Answer-Constraints that a differential equation must satisfy for it be valid Full Likelihood Function - Answer-Product of the contribution to the likelihood function of each life Motivation behind Pension Benefits - Answer-1.) Attract potential empl...

Upstream Commodity Producer - ANSWER-typically farmers of firms extracting commodities. Downstream commodity producer - ANSWER-processed a commodity(s) into a marketable product Excess Return Index - ANSWER-tracks the performance of a portfolio of commodity futures in excess of the risk-free rate. Total Return index - ANSWER-tracks the performance of a fully collateralized portfolio of commodity futures Characteristics of public-private partnerships (PPPs) - ANSWER-1. Financing comes...

Diversification - ANSWER-Acquiring assets with low or negative correlations to each other with the goal of lowering overall risk Correlation - ANSWER-- a relative measure of the degree to which the returns of two assets move together - range from +1.0 to -1.0 - in practice negative correlations are rare - the further a correlation is from +1.0, the more diversified Asset allocation - ANSWER-- the apportioning of available funds among a number of asset classes in a way that meets the ne...

5th percentile vs 25th percentile performance 5th percentile managers outperform in every comparison BUT 25th percentile managers' performance is more volatile --> even if 25th percentile managers outperform they tend to mean revert --> demonstrates the perils of choosing managers based on historical performance alternative asset performance evaluation unlike in traditional assets, alpha is difficult to define in alternatives investing; success can be defined as positive absolute...

CS 400 Exam 1 Questions & Answers 2023/2024 Red-Black Tree - ANSWER-Binary Search Tree that stays "balanced" (not height balanced) RBT root property - ANSWER-must be black RBT red property - ANSWER-Red nodes must have black children or no children RBT black property - ANSWER-every path from root to null child must have same number of black nodes(include root) RBT lookup - ANSWER-same as BST RBT insert - ANSWER-Same as BST but rebalancing RBT delete - ANSWER-Same as BST but...

CFA Level 3 Exam 204 Questions with Answers 2023 bounded rationality - CORRECT ANSWER individuals act as rationally as possible but are constrained by a lack of knowledge and cognitive ability satisfice - CORRECT ANSWER making a reasonable but not necessarily optimal decision the price is right - CORRECT ANSWER asset prices reflect and instantly adjust to all available information weak-form efficiency - CORRECT ANSWER prices inncoporate all past price and volume data semi-strong...

CAIA Level II Questions with Correct Answers 2024 Upstream Commodity Producer typically farmers of firms extracting commodities. Downstream commodity producer processed a commodity(s) into a marketable product Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Excess Return Index tracks the performance of a portfolio of commodity futures in excess of the risk-free rate. Total Return index tracks...

FinQuiz - Smart Summary, Study Session 16, MONITORING AND REBALANCING Reading 32

FinQuiz - Curriculum Note, Study Session 16, Monitoring and Rebalancing Reading 32