Rebalancing Study guides, Class notes & Summaries

1. The disease AIDS (Acquired Immune. Deficiency Syndrome) is caused: a. Spirilla b. Virus c. Saprophyte d. Spore - correct answer b. Virus 2. The nails turn black and when advanced nail mold. a. Split b. Smell bad c. Soften d. Harden - correct answer b. Smell bad 3. The time to set up your station and sanitized your instruments is when clients are: a. Go home b. Waiting c. Drinking coffee d. Not yet present - correct answer d. Not yet present 4. The brush used t...

Chapter Two: Modern Portfolio Theory questions and answers 2023 Define modern portfolio theory An investment framework that is useful in diversifying the risk when allocating assets in a financial, liquid (tradable) portfolio in order to maximise the potential return given a specified level of risk appetite or tolerance. Modern portfolio theory (MPT) is born out of investment common sense. The rationale is that minimising risk and maximising the potential return should be something that...

CHC exam Questions and Answers 2023 Chapter 8 Federal Sentencing Guidelines (FSG) Ans- Guidelines and policy in this section apply to sentencing in federal criminal prosecution when the convicted defendant is an organization FSG- 4 factors that increase ultimate punishment of an organization Ans- 1.Involvement in or tolerance of criminal activity 2.Prior history of the organization 3.The violation of an order 4.The obstruction of justice FSG- The two factors that mitigate the ultimat...

INV2601_STUDY NOTES. INV2601 - Investments: An Introduction. THE INVESTMENT SETTING Investment is the current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for (1) the time the funds are committed, (2) the expected rate of inflation, and (3) the uncertainty of the future payments. Return is a profit on an investment. Rate of return is a profit on an investment over a period of time. Required Rate of Return, the minimum retur...

Rebalancing activity - Answer-can be seen as a short strangle trade Short strangle = out-of-the-money calls and out-of-the-money puts are sold. Corpus - Answer-the nominal value of the endowment's initial gift advantages that may explain the outperformance enjoyed by endowments - Answer-1. Aggressive asset allocation 2. Effective investment management research 3. First-mover advantage 4. Access to a network of talented alumni 5. Acceptance of liquidity risk pension plan's PBO...

Q. Which of the following statements is most accurate with respect to rebalancing and reconstitution of security market indexes? Equal-weighted indexes require frequent rebalancing. A price-weighted index requires rebalancing more than a market-capitalization-weighted index. Turnover within an index results from a reconstitution but not from rebalancing - Answer- A is correct. After an equal-weighted index is constructed and the prices of constituent securities change, the index is no longe...

Q. Which of the following statements is most accurate with respect to rebalancing and reconstitution of security market indexes? Equal-weighted indexes require frequent rebalancing. A price-weighted index requires rebalancing more than a market-capitalization-weighted index. Turnover within an index results from a reconstitution but not from rebalancing - Answer- A is correct. After an equal-weighted index is constructed and the prices of constituent securities change, the index is no longe...

CPFO Examination- Pensions schemes Investment Policy Functions - Correct Answer-1. Statement of goals 2. Articulating the investment philosophy and risk tolerance 3. Demonstrates due diligence b/c the system follows a prudent set of procedures 4. Established internal controls 5. Provides guidance to staff and third parties 6. Risk management tool Typical Provisions of an Investment Policy - Correct Answer-1. Statement of goal(s), purpose, or mission 2. Identification of decision maker(s...

(1) Equity valuation (2) Bond Portfolio Management (and rebalancing) (3) Asset pricing (4) Efficient Market Hypothesis (5) Behavioral finance

CFA L1 MAY 2024 - Portfolio Management (Part II) Portfolio management process - Answer- 1.) Planning 2.) Execution 3.) Feedback Smart beta - Answer- focus on exposure to a specific market risk factor Investment Policy Statement (IPS) - Answer- -Identifies client objectives and constraints -Clear statement of client risk tolerance -Imposes investment discipline on both client and manager -Identifies risk -Identifies a benchmark portfolio consistent with client preferences Major ...