Question NumberQuestion1Which of the following statements concerning the Markowitz efficient frontier is correct?A portfolio that offers the highest rate of return with the lowest degree of risk is on the efficient frontier.A portfolio that offers the lowest rate of return for a higher degree of risk is on the efficient frontier.A portfolio that offers the lowest degree of risk for a given rate of return is above the efficient frontier.A portfolio that offers the highest rate of return for a given degree of risk is on the efficient frontier.2The goal of asset alloction is to reduce risk through diversification by having exposure to a variety of investments that perform differently during different market conditions. According to Schwab, in recent years the following has changed:Assets are more correlatedLess external shocksBond yields are lowExpected stock retruns are lowerI, II, IIII, III, IVI, II, IVII, III, IV3Which of the following statements concerning beta coefficients is (are) correct?Investors who tend to be risk averse should have portfolio made up mostly of high-beta coefficient securitiesBeta coefficients of particular securities change over time.Beta coefficients are constructed based on past data.(I) only(I) and (III) only(I) and (II) only(II) and (III) only4List three advantages of asset allocationSmooths out the ups and downs of the marketShows that is pays to have your eggs in one baseketAllows for diversificationHelps to mitigate downside risk(I), (II), (III)(I), (III), (IV)(II), (III), (IV)(I), (II), (IV)5Which of the following is not likely to be found in the portfolio of a typical money market mutual fund?Collateralized mortgage obligations (CMOs)U.S. Treasury billsNegotiable certificates of depositCommercial paper6According to Harry Markowitz, the only âfree lunch in financeâ is:When assets move in harmony, then a diversified portfolio will have less risk.A diversified portfolio cannot deliver more than the sum of its parts.Perfectly correlated individuals assets provide this âfree lunchâ.Diversification can deliver benefits over time at no additional cost .7Which of the following statements concerning the standard deviation of a stockâs rate of return is (are) correct?The standard deviation of a stockâs rate of return reflects both the systematic and unsystematic risks associated with the stock.Approximately 68% of the rates of return on the stock will fall within plus or minus one standard deviation of the average rate of return(1) only(2) onlyBoth (1) and (2)Neither (1) nor (2)8Once a strategic asset allocation is in place, an investor can make âtacticalâ adjustments to take advantage of market opportunities or to avoid risks. Which of the following is not an example of tactical shifts:Time the market in the short-termOverweigh certain asset classesUnderweight certain asset classesBuy or sell due to tax considerations___________________________________________________________Questions #9 and #10 are based on the following facts:Assume a four-stock portfolio of stocks with following characterisitcs:Stock Percentage of Total Beta Rate of ReturnK 20% 0.9 -3.6%L 25% 1.2 7.0%M 30% 1.4 9.0%N 25% 1.5 -2.2%9Which of the following is the weighted average beta for the above portfolio?1.2751.7501.8002.25010What is the standard deviation of the above portfolio?3.116.376.92Answer cannot be determined from the information given11According to Schwab, a âgoal drivenâ modernized asset allocation model for individual investors includes the following:Absolute returnInflation hedgeAchievement of a specific targetRisk reductionI, II, IIII, III, IVI, II, IVII, III, IV12According to Schwab, in reponse to changing economic conditions, asset allocation has evolved from the typical stocks, bonds and cash blends popular during the 1990s. Modern asset allocation now encompasses non-traditional asset classes, such as commodities. TrueFalse
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.