Sharpe portfolio measure - Study guides, Class notes & Summaries

CFA Level 1 Quantitative Methods Exam 318 Questions with Answers Three ways interest rates can be thought of - CORRECT ANSWER First, they can be considered required rates of return—that is, the minimum rate of return an investor must receive in order to accept the investment. Second, interest rates can be considered discount rates. In the example above, 5.26 percent is that rate at which we discounted the $10,000 future amount to find its value today. Thus, we use the terms "interest r...

CRPC (2024/025) EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS || ALREADY GRADED A+ <LATEST VERSION> Systematic Risk - ANSWER P-purchasing power risk R- reinvestment risk I- interest rate risk M- market risk E- exchange rate risk Two types or Risk - ANSWER Systematic and Unsystematic Examples of Systematic Risk - ANSWER Purchasing Power Reinvestment Rate Interest Rate Market Exchange Examples of Unsystematic Risk - ANSWER Business Financial Political Purchasing Powe...

CFA Level 1 Terms Exam 234 Questions with Answers 2023 Standard 1A: Knowledge of the Law - CORRECT ANSWER Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing professional activities. In the event of a conflict, Members and Candidates must comply with the more str...

Chapter 15 - Selecting a Mutual Fund Questions and Answers Highest to lowest risk: Balanced funds Real estate funds Specialty funds Mortgage funds Specialty funds Real estate funds Balanced funds Mortgage funds Highest to lowest risk all funds: SREDBBMM Specialty Funds Real Estate Funds Equity Funds Dividend Funds Balanced Funds Bond Funds Mortgage Funds Money Market Funds What type of risk is described by sensitivity of a security's price to new information leadi...

CAIA Volume 1 Final Exam 2023 Define investment - CORRECT ANSWER-Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - CORRECT ANSWER-Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - CORRECT ANSWER-Hedge funds, Private Equity, and Structured Products Name the five structures that differe...

A 68 year-old client of yours indicates that he is interested in changing the portfolio mix of his IRA to become largely invested in noninvestment grade bonds. You would probably infer from this that the client: - ANSWER-A) has insufficient retirement savings. Most studies have indicated that seniors with insufficient retirement savings attempt to compensate by being tempted to reach for higher yields to maximize retirement income without full consideration of the increased risk that comes a...

CFA Level 1 Formulas Exams 245 Questions with Answers Price change based on convexity - CORRECT ANSWER -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - CORRECT ANSWER Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - CORRECT ANSWER [(v-)-(v+)]/[2V0(change in yield)] Future Value - CORRECT ANSWER PV(1+(I/Y)^N) PV - CORRECT ANSWER FV/(1+r)^n PV of perpetuity - CORRECT ANSWER PMT / discount rate Ap...

Portfolio theory questions and answers 100% correct portfolio theory risks in an individual asset returns have systematic and non systematic risks systematic risk common to many assets and are non- diversifiable non- systematic risk specific to individual asset; unique to stock; can be eliminated; are diversifiable how to diversify non-systematic risks? 1. form portfolios 2. investors hold diversified portfolios instead of single assets what is the optimal way t...

Investment companies - correct answer Companies that exist solely to hold investments on behalf of their shareholders, partners, or unitholders, including mutual funds, hedge funds, venture capital funds, and investment trusts. Futures contract - correct answer An agreement that obligates the seller, at a specified future date, to deliver the buyer a specified underlying in exchange for the specified futures price. Accrued liabilities - correct answer Liabilities related to ...

Alpha - Answer-Measure of risk-adjusted performance Beta - Answer-Measure of a fund's or a stock's risk in relation to the market or to an alternative benchmark Gamma - Answer-Ratio of a change in the option delta to a small change in the price of the asset on which the option is written PERS - Answer-Public Employee Retirement System CAFR - Answer-Comprehensive Annual Financial Report PERS CAFR - Answer-Comprehensive Annual Financial Report for a Public Employee Retirement System ...