The Asset Management Process is...
Ans: Gather data, Establish goals, Analyze information, Make recommendations
and implement, monitor performance
Required Rate of return formula =
Ans: (e)r = Rf + (Rm-Rf)Bp
What is Excess Return ?
Ans: Total Portfolio Return - Risk Free Rate
Explain Jensen...
AAMS Exam Questions and Correct Answers The Asset Management Process is... Ans: Gather data, Establish goals, Analyze information, Make recommendations and implement, monitor performance Required Rate of return formula = Ans: (e)r = Rf + (Rm -Rf)Bp What is Excess Re turn ? Ans: Total Portfolio Return - Risk Free Rate Explain Jensen performance ratio? Ans: This measure of performance is a measure of absolute risk, meaning it can be used as a stand -alone measure as apposed to a relative measure (one that compares) Treynor ratio uses what to measure risk? Ans: beta Sharpe ratio uses what to measure risk ? Ans: Standard Deviation Treynor formula? Ans: Ti = Excess return / portfolio beta Sharpe ratio formula? Ans: = Total Portfolio return - Rfr / standard deviation The Treynor ratio output shows what...? Ans: It shows how much return each fund generated per one unit of risk Treynor measure is only appropriate for what type of portfolios? and why? Ans: fully diversified portfolios; because it uses beta as its measure of risk, and beta is a systemic type of risk (market risk) exce ss return is what? Ans: total portfolio return - Rfr T or F: Indexes assume that all dividends and distributions are reinvested. Ans: true What is risk in terms of investing? Ans: The degree of uncertainty associated with return of an asse t. Required rate of return formula is AKA as what...? Ans: CAPM pricing model What are the three key elements of an investment strategy? Ans: an identifiable goal, a method to attain that goal, and the competencies and resources to sustain the strategy What are the three categories of EMH? Ans: Weak Form, Semi -Strong form, and the strong form.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Latestupdate. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
