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Question 1 of 10
1. Question
There are a variety of forms for transfer agreements, which of the following is not included?
Correct
Obviously, the buyer of the securities would want to take ownership or deliver those securities. Otherwise, problems can occur if the seller defaults on the purchase of the securities
Incorrect
Obviously, the buyer of the securities would want to take ownership or deliver those securities. Otherwise, problems can occur if the seller defaults on the purchase of the securities
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Question 2 of 10
2. Question
There’s a variety of factors that can affect the repo rate, which of the following does not apply?
Correct
A repo is normally a guaranteed loan, and the interest rate does not depend on the credit quality of the parties concerned. If execution is not taken or weakly guaranteed, the financial security and ethical characteristics of the parties would be even more relevant
Incorrect
A repo is normally a guaranteed loan, and the interest rate does not depend on the credit quality of the parties concerned. If execution is not taken or weakly guaranteed, the financial security and ethical characteristics of the parties would be even more relevant
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Question 3 of 10
3. Question
Which of the following statements can be a problem that can be associated with using the variance or standard deviation to measure bond portfolio risk?
Correct
The estimated return of the portfolio is the weighted average of the expected returns of each portfolio security. The variance of the portfolio shall be measured by that of the weight of each security in the portfolio, the variance of every security as well as the covariance within each pair of securities
Incorrect
The estimated return of the portfolio is the weighted average of the expected returns of each portfolio security. The variance of the portfolio shall be measured by that of the weight of each security in the portfolio, the variance of every security as well as the covariance within each pair of securities
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Question 4 of 10
4. Question
An active manager mainly seeks to add value through means, which of the following is most likely included here?
Correct
Throughout the first step, investors in foreign fixed-income markets need to pick a role on the passive/active spectrum. The possibilities for active management are provided by inefficiencies that can be traced to variations in tax treatment, local legislation, analysis by fixed-income analysts, and even to discrepancies in how market actors respond to similar details
Incorrect
Throughout the first step, investors in foreign fixed-income markets need to pick a role on the passive/active spectrum. The possibilities for active management are provided by inefficiencies that can be traced to variations in tax treatment, local legislation, analysis by fixed-income analysts, and even to discrepancies in how market actors respond to similar details
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Question 5 of 10
5. Question
Which of the following best describes both the similarities with and differences from selecting a fixed-income manager has from the selection of an equity manager?
Correct
Here are some of the considerations that should be weighed when establishing selection criteria:
(1) Style analysis
(2) Selection bets
(3) Investment method of the company
(4) Correlation of alphasIncorrect
Here are some of the considerations that should be weighed when establishing selection criteria:
(1) Style analysis
(2) Selection bets
(3) Investment method of the company
(4) Correlation of alphas -
Question 6 of 10
6. Question
Passive management would be where the investor doesn’t somehow seek to represent his investment preferences by adjustments in the security holding, although there are a few alternatives to this type of management. Which of the following is the most dominant passive approach?
Correct
It includes investing in such a portfolio that seeks to replicate the success of a given benchmark. While passive in the context of not incorporating investor preferences for stocks, indexed portfolios are far from being passive in their execution
Incorrect
It includes investing in such a portfolio that seeks to replicate the success of a given benchmark. While passive in the context of not incorporating investor preferences for stocks, indexed portfolios are far from being passive in their execution
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Question 7 of 10
7. Question
Which of the following is not a major choice concerning the specific passive investment vehicles?
Correct
This strategy seeks to optimize long-term returns thus limiting purchases and sales to a minimum. Index funds are perhaps the most common way of obtaining exposure to passive investment; the idea is to prevent costs and drag upon its performance that may result from regular trading
Incorrect
This strategy seeks to optimize long-term returns thus limiting purchases and sales to a minimum. Index funds are perhaps the most common way of obtaining exposure to passive investment; the idea is to prevent costs and drag upon its performance that may result from regular trading
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Question 8 of 10
8. Question
Which of the following statements best describes the difference between conventional index mutual funds and ETFs?
Correct
Indexed portfolios have three main categories, which are:
(1) Conventional mutual funds index
(2) Exchange-traded funds focused on benchmark index portfolios
(3) Separate accounts or combined accounts, mainly for institutional investors, intended to watch the benchmark indexIncorrect
Indexed portfolios have three main categories, which are:
(1) Conventional mutual funds index
(2) Exchange-traded funds focused on benchmark index portfolios
(3) Separate accounts or combined accounts, mainly for institutional investors, intended to watch the benchmark index -
Question 9 of 10
9. Question
Philosophy/process raises questions about how the portfolio can be handled. Which of the following is of the least concern to the question?
Correct
The usual Equity Manager questionnaire discusses five main areas: organization/people, philosophy/process, finances, results and fees. The whole questionnaire will be designed as a systematic framework for the direct comparison of various investment companies
Incorrect
The usual Equity Manager questionnaire discusses five main areas: organization/people, philosophy/process, finances, results and fees. The whole questionnaire will be designed as a systematic framework for the direct comparison of various investment companies
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Question 10 of 10
10. Question
Which of the following best describes the “buy-side” as well as the “sell-side”?
Correct
Sell-side and buy-side analysis is also built differently. This research is usually grouped by a sector/industry with a geographic definition. In addition to giving information such as earnings estimates, sell-side analysts often rate businesses as purchasing, keeping or selling
Incorrect
Sell-side and buy-side analysis is also built differently. This research is usually grouped by a sector/industry with a geographic definition. In addition to giving information such as earnings estimates, sell-side analysts often rate businesses as purchasing, keeping or selling