Port Quiz

Asset allocation falls under which stage of the investment management process?

The shift in popularity from active to passive investing in many parts of the investment world is most likely evidenced by the rise of:

…………… has the highest risk tolerance.

Analyst 1: When a risk-free asset is not available, the optimal portfolio on an efficient frontier for each investor lies on the indifference curve that is tangential to the efficient frontier.
Analyst 2: Steeper indifference curves for investors indicate that they are more risk averse.

The efficient frontier is located…….

Identify the statement about efficient frontiers that is least accurate.

Which of the following statements about risk aversion is incorrect?

Which of the following is incorrect about utility?

Which of the following about individuals’ behavior is not true?

The slope of the capital allocation line is known as:

When an investor wants to invest on the capital market line but has different lending and borrowing rates, then it is most likely that the Sharpe ratio will be:

The Treynor ratio is the amount of excess return per:

A short-term adjustment of target portfolio proportions in certain asset classes is known as:

Which of the following is not likely to be discussed in the  constraints section of an IPS?

Fama & French model say that value stocks with high book-to-market ratios outperform growth stocks. This is explained as:

In case of an asset price bubble, the impact of the anchoring bias is:

The bias that is difficult to correct with education is:

A firm offers a defined contribution pension to all employees. Until 6 years ago, enrollments were very low, but then the firm changed the policy to automatic enrollment. Enrolling significantly increases. This is a result of……

when a bank loses by mistake credits a customer account with 1000 in stead of 10, this is most likely an example of:

The left tail of a profit distribution for a portfolio is analyzed using: