Exam (elaborations)
AAMS Exam Practice Questions and Answers (100% Pass)
- Course
- Institution
AAMS Exam Practice Questions and Answers (100% Pass)
[Show more]
Content preview
©PREP4EXAMS@2024 [REAL EXAM DUMPS] Tuesday, July 23, 2024 10:52 AMAAMS Exam Practice Questions and Answers (100% Pass)
The Asset Management Process is... - ✔️✔️Gather data, Establish goals, Analyze information,
Make recommendations and implement, monitor performance
Required Rate of return formula = - ✔️✔️(e)r = Rf + (Rm-Rf)Bp
What is Excess Return ? - ✔️✔️Total Portfolio Return - Risk Free Rate
Explain Jensen performance ratio? - ✔️✔️This measure of performance is a measure of absolute
risk, meaning it can be used as a stand-alone measure as apposed to a relative measure (one that
compares)
Treynor ratio uses what to measure risk? - ✔️✔️beta
Sharpe ratio uses what to measure risk? - ✔️✔️Standard Deviation
Treynor formula? - ✔️✔️Ti = Excess return / portfolio beta
Sharpe ratio formula? - ✔️✔️= Total Portfolio return - Rfr / standard deviation
The Treynor ratio output shows what...? - ✔️✔️It shows how much return each fund generated per
one unit of risk
Treynor measure is only appropriate for what type of portfolios? and why? - ✔️✔️fully diversified
portfolios; because it uses beta as its measure of risk, and beta is a systemic type of risk (market
risk)
excess return is what? - ✔️✔️total portfolio return - Rfr
T or F: Indexes assume that all dividends and distributions are reinvested. - ✔️✔️true
What is risk in terms of investing? - ✔️✔️The degree of uncertainty associated with return of an
asset.
Required rate of return formula is AKA as what...? - ✔️✔️CAPM pricing model
1
, ©PREP4EXAMS@2024 [REAL EXAM DUMPS] Tuesday, July 23, 2024 10:52 AM
What are the three key elements of an investment strategy? - ✔️✔️an identifiable goal, a method
to attain that goal, and the competencies and resources to sustain the strategy
What are the three categories of EMH? - ✔️✔️Weak Form, Semi-Strong form, and the strong
form.
Does the efficient market hypothesis use technical analysis? - ✔️✔️No
T or F: Fundamental analysis is said to provide superior returns in weak-form hypothesis. -
✔️✔️True
What does semi-strong form EMH imply? - ✔️✔️Implies that only private (inside) information
can provide superior returns
What does strong-form EMH imply? - ✔️✔️that nothing works to achieve superior returns
Which industries do well in a recession? - ✔️✔️Consumer staples, utilities (tobacco, liquor, etc.)
What is the Brinson study? - ✔️✔️It is a study that says to give more attention to Asset Allocation,
and less attention to securities selection and market timing
U.S. dollar-denominated CD issued by foreign branches of major U.S. and foreign commercial
banks....what is this called? - ✔️✔️A Eurodollar CD
True or False.
Small company stocks have generally outperformed all other asset classes over the long term
according to Ibbotson and other major tracking data. - ✔️✔️true
What type of strategy does Tactical Asset Allocation use? - ✔️✔️Tactical asset allocation uses
securities selection and market timing techniques to shift assets from those perceived to be
overvalued to those that are perceived to be undervalued.
True or False: MM mutual funds invest in corporate bonds. - ✔️✔️false. Corporate Bonds are not
safe from default risk.
A bond's duration will increase or decrease with increases in market interest rates? - ✔️✔️decrease
because their is an inverse relationship between duration and interest rates of the market
T or F. Technical analysis assumes that stock prices move in trends. - ✔️✔️True
Quick ratio formula: - ✔️✔️(Current Assets - Inventory) / Current Liabilities
How frequently do mortgage pass through bonds make payments? - ✔️✔️monthly
Dividends from REITS are taxed as..... - ✔️✔️ordinary income
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now