Modern portfolio theory - Study guides, Study notes & Summaries

CSL2601 PORTFOLIO MEMO - MAY/JUNE 2024 - SEMESTER 1 - UNISA - (DETAILED ANSWERS WITH REFERENCES - DISTINCTION GUARANTEED!) In the early 1990s when South Africa was contemplating transition to democracy, Wiechers advanced the case for the establishment of a constitutional court. He argued that this court would be able to protect and enforce human rights and liberties [and] to provide expert knowledge and the political as well as socio-economic understanding which is needed to judge int...

Chapter Two: Modern Portfolio Theory questions and answers 2023 Define modern portfolio theory An investment framework that is useful in diversifying the risk when allocating assets in a financial, liquid (tradable) portfolio in order to maximise the potential return given a specified level of risk appetite or tolerance. Modern portfolio theory (MPT) is born out of investment common sense. The rationale is that minimising risk and maximising the potential return should be something that...

The term "emerging economies" has replaced the term _____. - Correct answerDeveloping countries The gross domestic product plus the income from non-resident sources abroad gives the ____. - Correct answer-gross national product More than 25% of global GDP comes from _____. - Correct answer-BRICS countries Viewing the global economy as a pyramid, the Triad refers to _____. - Correct answerNorth America, Western Europe, and Japan People who earn _____ a year comprise the base of the global ...

Q. Which of the following types of trusts can use the Uniform Principal and Income Act power to adjust ? A. GRAT B. Trust under will C. Revocable trust D. Charitable lead trust - Answer-Solution : The correct answer is B. Q. Which of the following is a power of attorney for property that is effective upon execution and does NOT terminate upon the principal's incapacity? A. General B. Springing C. Durable D. Limited - Answer-Solution: The correct answer is C Q. A client borrows $ 100,...

CSL2601 PORTFOLIO MEMO - MAY/JUNE 2024 - SEMESTER 1 - UNISA - DUE DATE :- 15 MAY 2024 (DETAILED ANSWERS WITH FOOTNOTES AND BIBLIOGRAPHY - DISTINCTION GUARANTEED!) In the early 1990s when South Africa was contemplating transition to democracy, Wiechers advanced the case for the establishment of a constitutional court. He argued that this court would be able to protect and enforce human rights and liberties [and] to provide expert knowledge and the political as well as socio-economic un...

If an investment adviser sells a security that it owns to an advisory client, which of the following scenarios would violate the Uniform Securities Act? a. The IA acts as a broker-dealer to the seller of the securities without written disclosure b. The IA acts as a principal in the transaction with written consent and disclosure c. The IA acts as a broker-dealer to the buyer of the securities without written consent and disclosure d. The IA recommends the purchase of a private placement to t...

Which of the following best describes a household? - Answer- An organization of one or more people who live in the same dwelling and share financial and other resources intended for the well-being of its members. Which of the following may be a reason why household savings in the U.S. have declined n recent years? - Answer- Above average growth of the single-adult-household category (including households with children). The method by which people select goods and services to satisfy their ...

CAIA Level 1 Practice Questions with Complete Solutions Which of the following investments is most likely to be considered an institutional quality alternative investment? A. Vintage Wine Collection B. Long/Short Equity Hedge Fund C. High-Yield Corporate Bond Fund D. Small Cap Equity Index Fund B. Institutional-quality alternative investments exhibit risk and return characteristics that are acceptable to institutional investors. Institutional investors have risk and return objective...

Investment Portfolio :~~ Set of securities you have Security Analysis :~~ Analyzing whether a security is misvalued by the market Portfolio Management :~~ Managing securities according to an investor's needs, monitoring and evaluating it's performance. Risk - return trade-off :~~ The possibility of higher returns usually comes with a higher degree of risk Modern Portfolio Theory :~~ An approach towards investing based on principles following efficient diversification and ri...

Section 5: Portfolio Management - Exam Questions With Verified Answers. Standard deviation is a measure of _____________________ while Beta is a measure of______________________. - answera) market risk and unsystematic risk b) systematic and idiosyncratic risk c) total risk and systematic risk d) systematic and market risk Standard deviation is a measure of total risk (both systematic and unsystematic risk). However, beta is a measure of volatility capturing market or systematic risk. Se...