Module 12 (Comprehensive Investment Advice)

For which kind of Asset Allocation a Seasoned investor is required?

Which Asset Allocation was used primarily by institutional investors?

Which is least likely to be characteristic of rebalancing of a portfolio?

Rebalancing strategy which requires focusing on the degree or percentage to which assets in the portfolio have increased or decreased in value is called _____.

What is required for building an effective portfolio?

_____ is the process of distributing portfolio investments among different asset classes, such as money market instruments, bonds, stocks, real estate, and commodities.

_____ asset allocation strategy is long term and generally passive and rebalanced periodically to return to the original allocation percentages.

Which of the following asset allocation strategy is short-term and responds to changes in the market and take advantage of market timing by changing asset allocation for the short term?

Which asset allocation strategy is followed by investors here? A major part of the investment is passively invested and a small portion of the investment is used to take advantage of market timing in short term?

Identify the asset allocation strategy referred to here by the investor. Portfolio shifted between riskless and risky assets in response to market movements and portfolio value changes, a hedging allocation to insure against a too large decline in value.

What are the decisions involved in the Asset Allocation process?

Which code of ethics is referred to here ” Maintain the abilities, skills, and knowledge necessary to provide professional services competently, wisdom to recognize one’s own limitations and when consultation with other professionals is appropriate or referral to other professionals necessary?

Mr. J an investor decided to rebalance the portfolio when the assets in the portfolio have increased or decreased in certain specified value and, thereby, increased or decreased as in certain specified percentage of the portfolio. Here what are the basis of rebalancing?

Which asset allocation strategy essentially combines both active and passive management of assets?

Selective perception is most likely an aspect of what type of behavioral bias?

The point of tangency between the capital market line (CML) and the efficient frontier of risky assets most likely identifies the:

How is nominal yield calculated compared with current yield?

What sequence best represents the risk-return trade-off from lowest risk to highest?

Although there is flexibility regarding specific priorities and focus of each life stage, which life stage is likely to primarily be concerned with funding children’s education and establishing peak earning potential?

Regarding core/satellite asset allocation, which of the following statement is true?

Factors such as changes in interest rates and changes in inflation contribute to _____.

Which one of the following would be true if an adviser agrees with the strong form of the Efficient Market Hypothesis (EMH)?