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CMSA (PORTFOLIO MANAGEMENT FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED, GRADED A++ CA$14.47   Add to cart

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CMSA (PORTFOLIO MANAGEMENT FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED, GRADED A++

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CMSA (PORTFOLIO MANAGEMENT FUNDAMENTALS) EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED, GRADED A++ Give some characteristics of Active Investing 1. Takes on more risk for a higher return 2. Actively making investment decisions 3. Typically, higher management fees Give some char...

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  • September 28, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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CMSA (PORTFOLIO MANAGEMENT

FUNDAMENTALS) EXAM QUESTIONS AND

ANSWERS WITH COMPLETE SOLUTIONS VERIFIED,

GRADED A++


Give some characteristics of Active Investing


1. Takes on more risk for a higher return

2. Actively making investment decisions

3. Typically, higher management fees


Give some characteristics of Passive Investing


1. Making investment decisions to replicate a benchmark or index

2. Aiming to match exactly, neither outperforming, nor underperforming


Give some examples of traditional Portfolio Manager Funds


1. Mutual Funds

2. Pension Funds

3. Insurance Company

4. ETF (Exchange Traded Funds)

, *All of which can be both either passive or active


Give some examples of Non-Traditional Portfolio Manager Funds


1. Hedge Funds

2. Venture Capital

3. Distressed Funds



*All of which are passively managed


Define Top-Down approach


An investment strategy that begins with macroeconomic analysis, moves to sector evaluation, and finally

selects individual securities


Define Bottom-Up approach


An investment strategy that begins with analyzing individual companies and their fundamentals before

considering the broader industry or macroeconomic environment


How do traditional funds differ from non-traditional funds?


1. The Stakeholders

Pensions-> Employees

Mutual Funds-> Investors

Insurance Company-> Policy Owners

Endowments-> Charitable recipients

Family Office-> Founding Family

2. Risk Tolerance

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