100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
Eerder door jou gezocht
Eerder door jou gezocht
logo
CRPC Modules (1-3) Questions And Correct Detailed Answers Graded A+. €12,74
In winkelwagen
Snel navigeren naar
Voorbeeld
  2.  
  3. CRPC.
  4.  
  5. CRPC.

Tentamen (uitwerkingen)

CRPC Modules (1-3) Questions And Correct Detailed Answers Graded A+.
 0 keer verkocht
  • Vak
  • CRPC.
  • Instelling
  • CRPC.

What are two purposes of investment policy? - correct answer 1. To provide a foundation of goals, time horizons, and constraints on which the client portfolio is constructed 2. To provide a basis for review, performance evaluation, and adaptation to c...

[Meer zien]

Voorbeeld 2 van de 9  pagina's

Document informatie

  • 10 augustus 2024
  • 9
  • 2024/2025
  • Tentamen (uitwerkingen)
  • Vragen en antwoorden

Onderwerpen

  • crpc modules 1 3 questions

Geschreven voor

  • CRPC.
  • CRPC.

Verkoper

avatar-seller
RealGrades

Ontvangen beoordelingen

Voorbeeld van de inhoud

CRPC Modules (1-3) Questions
What are two purposes of investment policy? - correct answer 1. To provide a
foundation of goals, time horizons, and constraints on which the client portfolio is constructed

2. To provide a basis for review, performance evaluation, and adaptation to changing conditions.



Why is a long term perspective essential as an element of investment policy? - correct answer
The returns work better in the investors favor if they are patient. There are ups and downs in the market
but over time the investor is playing a winning game.



Why is it important that investment policy be clearly defined? - correct answer
They must understand the critical importance of their investment policy, it also makes decision based on
how risky the client may be. It must be accurate and clear to them.



At a minimum, what five elements should every investment policy contain? - correct answer
Goals, Risk, Asset Allocation, Strategies, Periodic Review



How do you find the percentage change in bond price? - correct answer
Negative duration multiplied by the change in interest rate



What are the advantages and disadvantages of common stocks, and why should stocks be an important
element in most retirement portfolios? - correct answer Over time, common
stocks have almost always outperformed other financial instruments. They also offer rising dividends.
Disadvantage is their volatility, which is also higher than most asset classes. Two major risks are business
risk and market risk.



What are the advantages and disadvantages of fixed-income securities, and to what two sources of
return do their owners look? - correct answer Advantage to fixed income
securities is their cash flow stream and return of principal if held to maturity, high certainty of return.
Their disadvantages are a lower return due to guarantee as well as exposure to inflation and interest
rate risk.



What are the advantages and disadvantages of cash equivalent investments for the retirement investor?
- correct answer Advantages include a short-term maturity, they are highly

, liquid, and have a high safety of principal. The disadvantages are that they offer generally lower rates of
return and are thereby subject to purchasing power risk.



What are the advantages and disadvantages of real estate for the retirement investor? - correct answer
Advantages include an average rate of return and diversification. Disadvantages include poor liquidity,
high transaction costs, and tax-reporting responsibilities. They also can easily become overvalued.



Explain Standard Deviation - correct answer A statistical measure of total risk
that considers the dispersion of all data points around the average. With investments, higher standard
deviation means higher risk.



Explain Beta - correct answer Bet is the term referring to a security's volatility
measured to the market. The entire markets beta is 1. If security's bet is > 1 it is more volatile than the
market. If < 1 the security is less volatile than the market.



Explain Duration - correct answer Duration is a term used to describe the price
sensitivity of a bond or bond portfolio to changes in interest rates. Higher duration = higher price
volatility



XYZ Stock has SD of 14% and a mean of 10%. What is coefficient variation? - correct answer
0..10 = 1.4



Which coefficient variation has a better risk/return relationship? 0.88 or 1.5? - correct answer
0.88 offers less risk per unit of return and therefor is the better investment



How do you find the percentage change in the value of a bond? - correct answer
Multiply the duration by the interest rate change



Sharpe Ratio - correct answer Reward-to-volatility ratio; ratio of portfolio
excess return to standard deviation.



Treynor Ratio - correct answer measures investment performance as the ratio
of portfolio risk premium over portfolio beta

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, Bancontact of creditcard en je bent klaar. Geen abonnement nodig.

Focus op de essentie

Focus op de essentie

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper RealGrades. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €12,74. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 67479 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Start met verkopen
€12,74
  • (0)
In winkelwagen
Toegevoegd