Chap028 - Chapter 28 - Investment Policy and the Framework...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 28 - Investment Policy and the Framework of the CFA Institute Chapter 28 Investment Policy and the Framework of the CFA Institute Multiple Choice Questions 1. The CFA Institute divides the process of portfolio management into 3 main elements, which are ______, ______, and ______. A. planning; execution; results B. security selection; asset allocation; action C. planning; asset allocation; feedback D. planning; execution; feedback E. risk tolerance; feedback; action The 3 main elements, which are planning, execution, and feedback. Difficulty: Moderate 2. The planning phase of the CFA Institute's investment management process A. uses data about the client and capital market B. uses details of optimal asset allocation and security selection C. uses changes in expectations and objectives D. A, B, and C E. none of the above The planning phase of the CFA Institute's investment management process uses data about the client and capital market. Difficulty: Moderate 28-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 28 - Investment Policy and the Framework of the CFA Institute 3. The execution phase of the CFA Institute's investment management process A. uses data about the client and capital market B. uses details of optimal asset allocation and security selection C. uses changes in expectations and objectives D. A, B, and C E. none of the above The execution phase of the CFA Institute's investment management process uses details of optimal asset allocation and security selection. Difficulty: Moderate 4. The feedback phase of the CFA Institute's investment management process A. uses data about the client and capital market B. uses details of optimal asset allocation and security selection C. uses changes in expectations and objectives D. A, B, and C E. none of the above The feedback phase of the CFA Institute's investment management process uses uses changes in expectations and objectives. Difficulty: Moderate 28-2
Background image of page 2
Chapter 28 - Investment Policy and the Framework of the CFA Institute 5. __________ refer to strategies aimed at attaining the established rate of return requirements while meeting expressed risk tolerance and applicable constraints. A. Investment constraints B. Investment objectives C. Investment policies D. All of the above E. None of the above Objectives are goals, constraints refer to actions the investor is unwilling to take; both objectives and constraints determine policies. Difficulty: Moderate 28-3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 28 - Investment Policy and the Framework of the CFA Institute 6. One incorrect belief that is often cited as a reason for fully-funded pension funds to invest in equities is A. stocks have higher risk. B. bonds have lower returns. C. stocks provide a hedge against inflation.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/08/2011 for the course MBA ECON taught by Professor Hamza during the Spring '10 term at Prince Sultan University.

Page1 / 39

Chap028 - Chapter 28 - Investment Policy and the Framework...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online