Rebalancing Study guides, Class notes & Summaries

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...

5th percentile vs 25th percentile performance - Answer 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 - Answer unlike in traditional assets, alpha is difficult to define in alternatives investing; success can be defined as posit...

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...

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...

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