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Portfolio Management Flashcards | StudBud
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Portfolio Management
Portfolio Management
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Questions
38
Answers
1
One advantage gained by investing in a bond fund rather than in individual bonds is the
Most bond funds outperform their benchmarks
Diversification among issues
Immunity from interest rate changes
IDK
2
Risk-seeking investors seeking maximum capital appreciation with little income should invest in
Equity-income funds
Aggressive growth funds
Value funds
Growth Funds
3
Whats your favorite color?
Other
Black
Blue
Red
4
Like ordinary stocks, exchange-traded funds (ETFs) can be sold short
False
True
5
One characteristic of most index funds is that such funds typically
are designed to "beat the market"
Charge high front-end loads
Low-cost structure with respect to management fee
6
Rising interest rate tend to
Increase the level of business investment
Indicate government expansion of the economy
Signal the tough of a recessionary market
Contract the level of economic activity
7
The Federal Reserved through monetary policy can help expand economy by
Lowering income taxes on individuals
Increasing government spending on national infrastructure
Supporting a moderate growth of the money supply
Reducing tariffs such that foreign exports can increase
8
A type of fund that invests in real estate and/or mortgages is known as a
Sector fund
REIT
Hedge fund
ETF
9
The basic motivation of security analysis is to help investors
Contribute to the efficiency of securities markets
Identify the best time to buy and sell securities
Identify mispriced stocks
10
The mutual fund market is dominated by funds that invest in diversified bond portfolios
False
True
11
Which represents the market value of all goods produced in a country over a 12 month period?
Industrial production index
Productivity average
Money supply
Gross domestic product
12
Invest in a portfolio of companies from the same or closely related industries are known as
Sector funds
Merging market funds
Emerging market funds
Aggressive growth funds
13
What professors Baehler first name?
Carmen
Chole
Kaley
Karen
14
Analysis can only be profitable if some securities are at least temporarily mispriced
True
False
15
The PEG ratio
Is a measure of a firm's liquidity
measures the ability of a firm's liquidity
Compares price/earnings ratio to the rate of growth
16
Analysis are concern, how general state of the economy will impact the performance of company
True
False
17
what quote inspires you the most?
Fall In Love With Taking Care Of Yourself
River Cuts Through Rock Not With Power But With Persistence
Go Hard or Go Home
Life Begins at The End Of Your Comfort Zone
18
Which type of fund is always passively managed?
An index fund
A closed-end fund
A growth fund
19
Mental break time. Its the end of the year enjoy. What is 1 + 1 ?
Still not this one
Not this one
2
You have gone to far, the answer is 2!!
20
Investors seeking tax-exempt income should invest in
Municipal bond funds
Index funds
Money market funds
Government bond funds
21
The normal sequence in performing top down analysis is
Economy, industry, company
Profitability, efficiency, liquidity
Market condition, risk, company fundamentals
Competition, Consumer demand, threat of substitute products
22
Well managed companies rarely reach the decline stage because
Consumer remain loyal to established brands
The world's population is growing
all of the above
Develop new products to meet the need of changing markets
23
Index funds merely attempt to match the performance of some benchmark, not to outperform it
True
False
24
Investors are most interested in which one of the following ratios?
Return on assets
Return on equity
Net profit margin
Current ratio
25
Most exchanged-traded funds are index funds.
False
True
26
One characteristic of 12(b)-1 charges is that they are payable
Each year regardless of the performance of the mutual fund
only when shares in the fund are sold
only during the first year the fund is owned
27
Mental Break..
Not this one
mmmhm i gave you the answer press on it !!
This is the answer
Not this one either
28
Back-end loads
Charged if investor sells their shares within the first year
encourage short-term trading
To help no-load funds cover their marketing expenses
29
Automatic reinvestment of dividends and interest income
Will allow investors to defer taxes on the amount earned
Must be reauthorized by the investor each year
Is a default option from most mutual funds
30
Mutual funds provide an affordable way to diversify a portfolio.
False
True
31
One drawback of investing in mutual funds is the
Amount required for the initial investment
Annual management fee
lack of liquidity of fund shares
lack of information on the performance of the fund
32
Top-down security analysis
Includes economic, industry, and fundamental analysis
Center on the past performance of firm
Start with the fundamental analysis of a firm
33
A high P/E ratio may be an indication that a stock is overpriced
False
Ture
34
Investor buys shares in a mutual fund, they become a part owner of a portfolio of securities
False
True
35
The government has an expansionary economic policy when it
Promotes rising interest rates
Limits exports of good and services
Increases government spending
Increases taxes
36
Which of the following businesses will be positively impacted by a weak dollar
Retailing
Exports
Personal services
Imports
37
Mutual funds that match their personal investment goals and provide the services they desire
False
True
38
3 economic variables that the affect the stock
Retailing,exports and imports
Inflation, money supply, and Exchanged rate
Industrial index, money supply, and gross domestic product
