Quizific | Portfolio Manage Consists Quiz

Active portfolio management consists of _____

market timing

security analysis

indexing

A and B

If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability __________.

is above average

is average

is below average

does not exist.

________ can be used to measure forecast quality and guide in the proper adjustment of forecasts.

regression analysis

exponential smoothing

ARIMA

moving average models

The tracking error of an optimized portfolio can be expressed in terms of the ___ of the portfolio and thus reveal _.

return; portfolio performance

total risk; portfolio performance

beta; portfolio performance

beta; benchmark risk

The critical variable in the determination of the success of the active portfolio is ________.

alpha/systematic risk

alpha/nonsystematic risk

gamma/systematic risk

gamma/nonsystematic risk

Agency problems within a corporation are _______________.

conflicts among stockholders with differing objectives

conflicts between stockholders and financial intermediaries

conflicts among managers with competing interests

conflicts between managers and stockholders

Which of the following is not a mechanism for U.S. investors to participate in foreign investment opportunities?

Purchase foreign securities using American Depository Receipts.

Invest in mutual funds that purchase securities in international markets.

Invest in World Equity Benchmark Shares.

Purchase pass-through securities.

Which of the following is not a financial intermediary?

Credit unions

Insurance companies

Mutual funds

Investment bankers

Financial intermediaries which pool and manage the money of many investors are called _________________.

financial engineers

investment companies

investment bankers

credit unions

Creation of new assets by bundling and unbundling is referred as _________________.

asset allocation

underwriting

financial engineering

financial analytics

Portfolio Manage Consists Quiz