Chap024 - Chapter 24 - Portfolio Performance Evaluation...

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Unformatted text preview: Chapter 24 - Portfolio Performance Evaluation Chapter 24 Portfolio Performance Evaluation Multiple Choice Questions 1. Trading activity by mutual funds just prior to quarterly reporting dates is known as A. insider trading. B. program trading. C. passive security selection. D. window dressing. E. none of the above. Mutual funds must disclose portfolio composition quarterly, and trading activity that immediately precedes the reporting date is referred to as "window dressing". The speculation is that window dressing involves changes in portfolio composition, which gives the appearance of successful stock selection. Difficulty: Moderate 2. Window dressing is A. also known as insider trading. B. also known as program trading. C. trading activity by mutual funds just prior to quarterly reporting dates. D. illegal. E. none of the above. Mutual funds must disclose portfolio composition quarterly, and trading activity that immediately precedes the reporting date is referred to as "window dressing". The speculation is that window dressing involves changes in portfolio composition, which gives the appearance of successful stock selection. Difficulty: Moderate 24-1 Chapter 24 - Portfolio Performance Evaluation 3. The comparison universe is __________. A. a concept found only in astronomy B. the set of all mutual funds in the world C. the set of all mutual funds in the U.S. D. a set of mutual funds with similar risk characteristics to your mutual fund E. none of the above A mutual fund manager is evaluated against the performance of managers of funds of similar risk characteristics. Difficulty: Easy 4. The comparison universe is not __________. A. a concept found only in astronomy B. the set of all mutual funds in the world C. the set of all mutual funds in the U.S. D. a set of mutual funds with similar risk characteristics to your mutual fund E. all of the above A mutual fund manager is evaluated against the performance of managers of funds of similar risk characteristics. Difficulty: Easy 24-2 Chapter 24 - Portfolio Performance Evaluation 5. __________ did not develop a popular method for risk-adjusted performance evaluation of mutual funds. A. Eugene Fama B. Michael Jensen C. William Sharpe D. Jack Treynor E. A and B Michael Jensen, William Sharpe, and Jack Treynor developed popular models for mutual fund performance evaluation. Difficulty: Easy 24-3 Chapter 24 - Portfolio Performance Evaluation 6. __________ developed a popular method for risk-adjusted performance evaluation of mutual funds. A. Eugene Fama B. Michael Jensen C. William Sharpe D. Jack Treynor E. B, C, and D Michael Jensen, William Sharpe, and Jack Treynor developed popular models for mutual fund performance evaluation....
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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.

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Chap024 - Chapter 24 - Portfolio Performance Evaluation...

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