Sharpe portfolio measure - Study guides, Class notes & Summaries

FINC 340 Questions Correctly Answered. An investor deposited $10,000 into a portfolio at the beginning of the year. The portfolio increased by 8% by the end of the year. The investor withdrew half his funds and left the remaining on deposit. These funds increased by 20% over the next year. The investor then closed his account. What is the investor's two year holding period return? - CORRECT ANSWER A. 8.0% B. 14.0% C. 16.6% **D. 18.8% E. 20% Strategic asset allocation identif...

The average squared difference between the mean and each item in the population or sample - Answer- variance Measure of dispersion expressed as the square root of the variance; measure of volatility and the dispersion from an average; used in CAL, Sharpe, M2 and IR - Answer- standard deviation Describes asymmetry of data points from a normal distribution - Answer- skewness Measures the peakedness of probability distribution or normal distribution curve -positive - more slender, high pe...

Which of the following structures transforms asset ownership into potentially distinct and diverse tradable investment opportunities? trading structure Which of the following structures refers to the financial markets related to a particular instrument, such as whether the investment is publicly traded on an exchange? Which of the following investments most likely has a long lock-up period with a fund life of ten years or longer? hedge funds managed futures private equity stru...

Standard I(A) - Knowledge of Law - Answer Understand and comply with all applicable laws, rules and regulations (including the CFA institutes code) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of a conflict, comply with the more strict law, rule or regulation. Must not knowingly participate or assist in and must disassociate from any violation of such laws, rules or regulations Standard I(B)- In...

What are two purposes of investment policy? - correct answer 1. To provide a foundation of goals, time horizons, and constraints on which the client portfolio is constructed 2. To provide a basis for review, performance evaluation, and adaptation to changing conditions. Why is a long term perspective essential as an element of investment policy? - correct answer The returns work better in the invest...

Define investment - Answer Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - Answer Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - Answer Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investments - Answer ...

In constructing a point and Figure chart, a new entry is added only when? Price has moved equal to or more than the specified box size When the Stochastic indicator crosses below 20, it is signaling? The price is vulnerable to a reversal, but no action needs to be taken just yet. Brainpower Read More What principle describes a characteristic of related cycles Harmonics What formation is often called a coil? Symmetrical Triangle Bullish support lines on a 3-box...

FINANCE 322 FINAL STUDY QUESTIONS AND ANSWERS You have been given this probability distribution for the holdingperiod return for GM stock: Boom Prob 0.40 HPR 30% Normal growth Prob 0.40 HPR 11% Recession Prob 0.20 HPR -10% - CORRECT ANSWER221.04% If a portfolio had a return of 15%, the risk-free asset return was 5%, and the standard deviation of the portfolio's excess returns was 30%, the Sharpe measure would be - CORRECT ANSWER-.33 Skewness is a measure of - CORRECT ANSWER-the...

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...

What are the major steps in the asset management process - answer-1. Gather data 2. Establish goals 3. Analyze information 4. Make and implement recommendations 5. Monitor Stefan's business plan includes the following goal: "I will contact 50 prospective clients and document this activity in the CRM for tracking purposes." Which primary element of a good goal is missing? - answer-This goal is not time-framed. The acronym to remember for goal setting is SMART, which stands for Sp...