Trading strategy - Study guides, Class notes & Summaries

Wise Test Questions and Answers Already Graded A For what type of expense is borrowing typically considered wise? - An asset that appreciates in value over time - A short-term necessity - An immediate luxury - Routine monthly bills Why is the interest rate for a car loan usually lower than that for a personal loan? - The vehicle serves as collateral for the loan - Car loans are generally considered riskier - Personal loans require higher credit scores - Car loans are unsecur...

CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions CAIA level 1 - Topic 2 Introduction to alts with Complete Solutions 4 types of alternative assets - ANSWER-Alternatives are defined by inclusion: Real Assets Hedge Funds Private Equity Structred products Real Assets - ANSWER-Direct ownership of non financial assets: - natural resources - commodities - real estate - land - infrastructure - I...

Florida MPJE: June 2023 Questions and Answers 100% correct Food, Drug, and Cosmetic Act of 1938 Due to sulfanilamide elixir deaths New drugs must be SAFE before marketing Established the FDA Durham-Humphrey Amendment of 1951 Created OTC vs. Legend drugs Verbal prescriptions Prescription refills Kefauver-Harris Amendment of 1962 "Drug Efficacy Amendment" New drugs must be SAFE and EFFICACIOUS Established GMPs FDA oversees prescription drug advertising ...

CAIA Level II Test Bank | Actual Questions and Answers 100% Verified by Expert | Latest Updated 2024 What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? Multi-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. Mac...

CAIA Level 1 Section 1 Questions and Answers Graded A Regulatory Structures include government regulation and taxation. Securities structures include methods of cash flow securitization and the resulting trade-able units. 5 Sanity-Saving Tips for Arguing on the Internet 0:29 / 1:27 Trading Structures Include the development and execution of trading strategies utilized by investment managers and the resulting performance impact of strategies. Compensation Structures...

A client of yours with a conservative level of tolerance for systematic risk and a fairly long time horizon has indicated that she would prefer to avoid substantial portfolio turnover. Your suitable recommendation would most likely be: A.) a tactical strategy. B.) a passive strategy. C.) an aggressive strategy. D.) a hedged strategy. - ️️B.) a passive strategy. A member may maintain a representative registration for which of the following persons?I. A person who performs legal, compli...

Chapter 01 – An Introduction to Business Ethics Multiple Choice 1. Principles are a. laws and regulations that guide behavior in the world of business. b. mores, values, and customs that guide behavior in general. c. specific and pervasive boundaries for behavior that are universal and absolute. d. the obligations businesses have to maximize their positive impact and minimize their negative impact. e. the mores, values, and customs that parents teach their children. ANSWER: c 2. Corpor...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

A "walk in" customer tells you how his best friend has made a profit through rapid trading of small over-the-counter (OTC) stocks. He wants to do the same. You explain the high risks involved in such a strategy and your personal reservations about it. He gives you all the information you need for your new account form. The next week, he requests that you buy large positions in two thinly traded OTC issues. You think the order is too risky given his circumstances and tell him so, but ...

Fundamental analysis - looks at everything to best determine if the security's price will change. It is a method of analyzing the ST, MT, and LT prospects of different industries to shed light on security prices. Technical analysis - focuses on the stock market. It uses charts and patterns of the past to predict future performance. Program trading - a computer assisted trading strategy of buying or selling a large number of securities simultaneously. It can have an unintended effect on ma...