AWMA Investment Strategies Exam Questions With Correct And Revised Answers.
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Course
Awma
Institution
Awma
AWMA Investment Strategies Exam
Questions With Correct And Revised
Answers.
3 key elements invt strategy - answeridentifiable goal, a method to attain a goal, the
competencies and resources to sustain the strategy
What is the difference between investment strategy and investment policy? -
ans...
AWMA Investment Strategies Exam
Questions With Correct And Revised
Answers.
3 key elements invt strategy - answer✔✔identifiable goal, a method to attain a goal, the
competencies and resources to sustain the strategy
What is the difference between investment strategy and investment policy? -
answer✔✔investment policy sets forth the financial goals of the client, investment strategy is the
way9s0 to attaining those goals
What is the buy-and-hold strategy - answer✔✔as the name implies. the strategy involves
purchasing securities and then patiently keeping those securities for a long period of time, selling
only when there is a compelling need to do so
List of benifits of the buy and hold strategy - answer✔✔returns at least as good as stretegies
based on technical analysis, low transaction costs, the deferral of capital gains taxes on profits,
not missing the best days of the market
How does the efficient market hypothesis support the argument for a buy and hold strategy -
answer✔✔the efficient market hypothesis holds that current market prices reflet all the available
info about issuers and the future expectations of their investors; therefore, attempts to invest in
undervalued securities, with the inherent buying of undervalue securities and selling overvalued
securities, iscostly and a waste of time.
For each of the following economic stages, list the industries that are expected to do well. -
answer✔✔expansion: early stage (consumer credit, transportation, energy, and consumer
cyclicals), expansion: middle stage (basic materials), expansion: late stages (capital goods),
recession (consumer staples and utilities)
Define sector rotation - answer✔✔a timing strategy that shifts portfolio assests from one sector
of the economy to another in anticipation of broad-based economic developments
Describe the following technical indicators used by contrarians - answer✔✔short selling
(increaasing short selling in a stock indicates a growing herd consensus that the market will
decline; the contrarian should consider the opposite move), specialists' sentiment (considered to
be the "smart money," increased bullishness by specialists in a stock makes contrarians bullish as
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