Question 1

Cash matching is typically used to match coupon payments,but not face value payments at maturity.

Accepted Answer

A) True 
 B)False  False

Question 2

What the GFC taught advisers and __________________ in the most powerful and painful way possible was that _________________ is/are the most important factor/s for investors.

Accepted Answer

A)  bankers; bottom up analysis 
B)  governments; top down analysis 
C)  self-directed investors; asset allocation 
D)  analysts; a combination of fundamental and technical analysis 
A)  bankers; bottom up analysis 
B)  governments; top down analysis 
C)  self-directed investors; asset allocation 
D)  analysts; a combination of fundamental and technical analysis C

Question 3

According to the Ambachtsheer study in 1994,what proportion of funds managers favoured the active approach?

Accepted Answer

A)  $18 \% $ 
B)  $ 39 \% $ 
C)  $ 52 \% $ 
D)  $ 61 \% $ 
A)  $18 \% $ 
B)  $ 39 \% $ 
C)  $ 52 \% $ 
D)  $ 61 \% $ D

Question 4

Superannuation involves only personal superannuation schemes.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of a passive investment strategy?

Accepted Answer

A)  market timing 
B)  riding the yield curve 
C)  bond swapping 
D)  diversification 
A)  market timing 
B)  riding the yield curve 
C)  bond swapping 
D)  diversification

Question 6

Which of the following are active portfolio management strategies?

Accepted Answer

A)  Stock selection 
B)  Market timing 
C)  bond swapping 
D)  All of these choices 
A)  Stock selection 
B)  Market timing 
C)  bond swapping 
D)  All of these choices

Question 7

__________ portfolio management involves the setting of exposure levels to asset classes,and then selecting securities within asset classes with the view to holding these securities for the medium to long term.

Accepted Answer

A)  Active 
B)  Passive 
C)  Selective 
D)  Conservative 
A)  Active 
B)  Passive 
C)  Selective 
D)  Conservative

Question 8

How many exchange-traded funds were listed at the end of 2005 on the Australian Stock Exchange?

Accepted Answer

A) 1 
B)  6 
C)  39 
D)  87 
A) 1 
B)  6 
C)  39 
D)  87

Question 9

If large yield changes are expected,it is advisable to match convexity as well as duration.

Accepted Answer

A) True 
 B)False

Question 10

An example of duration risk is where the yield curve is initially flat,but then shifts in an upward direction.

Accepted Answer

A) True 
 B)False

Question 11

An investor who may want to delay or accelerate the timing of cash flows would be motivated by bond swapping.

Accepted Answer

A) True 
 B)False

Question 12

What kind of managed fund products have the primary objective of reinvesting earnings,such as interest and dividends,to take a medium-risk position to achieve capital growth.

Accepted Answer

A)  Growth funds 
B)  Income funds 
C)  Capital stable funds 
D)  Individual funds 
A)  Growth funds 
B)  Income funds 
C)  Capital stable funds 
D)  Individual funds

Question 13

In __________ the investor must forecast the equity market returns in the future,and then take an appropriate position with respect to the forecast.

Accepted Answer

A)  security selection 
B)  market timing 
C)  bond interest rate anticipation 
D)  bond swapping 
A)  security selection 
B)  market timing 
C)  bond interest rate anticipation 
D)  bond swapping

Question 14

The two main components of an investment strategy of a managed fund are:

Accepted Answer

A)  top-down selection and asset allocation 
B)  stock selection and asset allocation 
C)  hedging and stock selection 
D)  none of these choices 
A)  top-down selection and asset allocation 
B)  stock selection and asset allocation 
C)  hedging and stock selection 
D)  none of these choices

Question 15

Which type of fund makes investments directly,rather than acting as an agent?

Accepted Answer

A)  unit trust 
B)  superannuation fund 
C)  life insurance funds 
D)  individual fund 
A)  unit trust 
B)  superannuation fund 
C)  life insurance funds 
D)  individual fund

Question 16

__________ is an approach to manage bond portfolios by choosing portfolios with duration matching the duration of liability cash flows.

Accepted Answer

A)  Cash matching 
B)  Immunisation 
C)  Hedging 
D)  none of these choices 
A)  Cash matching 
B)  Immunisation 
C)  Hedging 
D)  none of these choices

Question 17

Alder (1983)highlights the _______________ that can be experienced when choosing a suitable ______________ with international bond investment.

Accepted Answer

A)  return; portfolio 
B)  difficulties; benchmark 
C)  cost efficiencies; investment 
D)  transaction costs; index 
A)  return; portfolio 
B)  difficulties; benchmark 
C)  cost efficiencies; investment 
D)  transaction costs; index

Question 18

Which of the following factors may affect the index tracking complexities?

Accepted Answer

A)  change in time to maturity 
B)  change in interest rates 
C)  change in share prices 
D)  all of the above 
A)  change in time to maturity 
B)  change in interest rates 
C)  change in share prices 
D)  all of the above

Question 19

are pooled investment vehicles that enable investors to invest and withdraw through individual tradeable units.

Accepted Answer

A)  Life insurance funds 
B)  Unit trusts 
C)  Individual funds 
D)  Superannuation funds 
A)  Life insurance funds 
B)  Unit trusts 
C)  Individual funds 
D)  Superannuation funds

Question 20

The portfolio insurance approach works by using an offsetting portfolio of:

Accepted Answer

A)  call options 
B)  put options 
C)  bought futures 
D)  bought warrants 
A)  call options 
B)  put options 
C)  bought futures 
D)  bought warrants

Cash matching is typically used to match coupon payments,but not face value payments at maturity.

What the GFC taught advisers and __ in the most powerful and painful way possible was that _ is/are the most important factor/s for investors.

According to the Ambachtsheer study in 1994,what proportion of funds managers favoured the active approach?

Superannuation involves only personal superannuation schemes.

Which of the following is an example of a passive investment strategy?

Which of the following are active portfolio management strategies?

__________ portfolio management involves the setting of exposure levels to asset classes,and then selecting securities within asset classes with the view to holding these securities for the medium to long term.

How many exchange-traded funds were listed at the end of 2005 on the Australian Stock Exchange?

If large yield changes are expected,it is advisable to match convexity as well as duration.

An example of duration risk is where the yield curve is initially flat,but then shifts in an upward direction.

An investor who may want to delay or accelerate the timing of cash flows would be motivated by bond swapping.

What kind of managed fund products have the primary objective of reinvesting earnings,such as interest and dividends,to take a medium-risk position to achieve capital growth.

In __________ the investor must forecast the equity market returns in the future,and then take an appropriate position with respect to the forecast.

The two main components of an investment strategy of a managed fund are:

Which type of fund makes investments directly,rather than acting as an agent?

__________ is an approach to manage bond portfolios by choosing portfolios with duration matching the duration of liability cash flows.

Alder (1983)highlights the _ that can be experienced when choosing a suitable with international bond investment.

Which of the following factors may affect the index tracking complexities?

are pooled investment vehicles that enable investors to invest and withdraw through individual tradeable units.

The portfolio insurance approach works by using an offsetting portfolio of:

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Performance Evaluation of Managed Funds

Filters

Exam 19: Portfolio Management

Cash matching is typically used to match coupon payments,but not face value payments at maturity.

What the GFC taught advisers and __________________ in the most powerful and painful way possible was that _________________ is/are the most important factor/s for investors.

According to the Ambachtsheer study in 1994,what proportion of funds managers favoured the active approach?

Superannuation involves only personal superannuation schemes.

Which of the following is an example of a passive investment strategy?

Which of the following are active portfolio management strategies?

__________ portfolio management involves the setting of exposure levels to asset classes,and then selecting securities within asset classes with the view to holding these securities for the medium to long term.

How many exchange-traded funds were listed at the end of 2005 on the Australian Stock Exchange?

If large yield changes are expected,it is advisable to match convexity as well as duration.

An example of duration risk is where the yield curve is initially flat,but then shifts in an upward direction.

An investor who may want to delay or accelerate the timing of cash flows would be motivated by bond swapping.

What kind of managed fund products have the primary objective of reinvesting earnings,such as interest and dividends,to take a medium-risk position to achieve capital growth.

In __________ the investor must forecast the equity market returns in the future,and then take an appropriate position with respect to the forecast.

The two main components of an investment strategy of a managed fund are:

Which type of fund makes investments directly,rather than acting as an agent?

__________ is an approach to manage bond portfolios by choosing portfolios with duration matching the duration of liability cash flows.

Alder (1983)highlights the _______________ that can be experienced when choosing a suitable ______________ with international bond investment.

Which of the following factors may affect the index tracking complexities?

are pooled investment vehicles that enable investors to invest and withdraw through individual tradeable units.

The portfolio insurance approach works by using an offsetting portfolio of:

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Performance Evaluation of Managed Funds

Filters

What the GFC taught advisers and __ in the most powerful and painful way possible was that _ is/are the most important factor/s for investors.

Alder (1983)highlights the _ that can be experienced when choosing a suitable with international bond investment.