Tactical asset allocation - Study guides, Class notes & Summaries

AAMS Practice Exam - Questions and Answers An employer plans to use corporate-owned life insurance to informally fund a nonqualified deferred compensation agreement and wants flexibility regarding investment choices. Which one of the following types of life insurance should this employer choose? Variable life insurance The latest economic reports have been gloomy, and the stock market is in a protracted slump. Most of your regular stock customers are selling out their positions. A new client, ...

CRPC Exam With Correct Solutions

CAIA Level I Exam 2023 5th percentile vs 25th percentile performance - CORRECT 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 - CORRECT ANSWER-unlike in traditional assets, alpha is difficult to define in alterna...

Diversification - ANS Acquiring assets with low or negative correlations to each other with the goal of lowering overall risk Correlation - ANS - 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 - ANS - the apportioning of available funds among a number of asset classes in a way that meets the ne...

What is seen as one of the most exciting yet least developed areas of ESG integration? - ANSWERSESG integration into informing and shaping strategic asset allocation. Why might ESG integration at the asset allocation level be redundant? - ANSWERSDue to the misalignment between investors' traditional efforts with asset allocators believing that ESG risk resides at the underlying security level, not at the asset allocation level. Dynamic Asset Allocation - ANSWERSestablishes initial asset...

CRPC Exam | Questions and Correct Answers | Latest Update 2024/2025 | Graded A+ 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 apporti...

Section 5: Portfolio Management - Exam Questions With Verified Answers. Standard deviation is a measure of _____________________ while Beta is a measure of______________________. - answera) market risk and unsystematic risk b) systematic and idiosyncratic risk c) total risk and systematic risk d) systematic and market risk Standard deviation is a measure of total risk (both systematic and unsystematic risk). However, beta is a measure of volatility capturing market or systematic risk. Se...

Diversification - correct answer Acquiring assets with low or negative correlations to each other with the goal of lowering overall risk Correlation - correct 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 - correct answer - the apportioning of available funds among a number of asset clas...

CRPC Exam | Questions and Correct Answers | Latest Update 2024/2025 | Graded A+ 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 apporti...

CRPC Exam Questions & Answers 2023/2024 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 numbe...