Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Theories Expert

problem 1: For an investor with a time horizon of 6 to 10 years and lower risk tolerance, a suitable asset allocation strategy would be:

a) 100% stocks.
b) 100% cash.
c) 30% cash, 50% bonds, and 20% stocks.
d) 10% cash, 30% bonds, and 60% stocks.
e) 100% bonds.

problem 2: For an investor with a time horizon of 6 to 10 years and higher risk tolerance, a suitable asset allocation strategy would be:

a) 100% stocks.
b) 100% cash.
c) 30% cash, 50% bonds, and 20% stocks.
d) 10% cash, 30% bonds, and 60% stocks.
e) 100% bonds.

problem 3: If you are considering investing in German stocks as a means to decrease the risk of your portfolio, the initial factor which you must examine is:

a) The average rate of return of the portfolio when you combine U.S. and German stocks.
b) The standard deviation of the German stocks.
c) The standard deviation of the German stocks compared to the standard deviation of U.S. stocks.
d) The correlation between the rates of return for German stocks and U.S. stocks.
e) The coefficient of variation (CV) of rates of return for German stocks versus the CV of rates of return for U.S. stocks.

problem 4: The correlation between U.S. equities and U.S. government bonds is:

a) Strongly positive.
b) Weakly Positive.
c) Strongly Negative.
d) Weakly Negative.
e) Indeterminate.

problem 5: In order to diversify risk an investor should have investments which have correlations with other investments in the portfolio that are:

a) Low positive.
b) Zero.
c) Negative.
d) Any of the above.
e) None of the above.

problem 6: If the real return for corporate bonds was 4% and the inflation rate was 2%, what is the nominal return for corporate bonds?

a) 1.96%
b) 2.00%
c) 4.00%
d) 6.08%
e) 6.42%

problem 7: The purpose of calculating the covariance between two stocks is to provide a(n) ____ measure of their movement altogether.

a) Absolute.
b) Relative.
c) Indexed.
d) Loglinear.
e) Squared.

problem 8: In a two-stock portfolio, if the correlation coefficient between two stocks were to decrease over time everything else remaining constant the portfolio's risk would:

a) Decrease.
b) Remain constant.
c) Increase.
d) Fluctuate positively and negatively.
e) Be a negative value.

problem 9: A portfolio is considered to be proficient if:

a) No other portfolio provides higher expected returns with the same risk.
b) No other portfolio provides lower risk with similar expected return.
c) There is no portfolio with a higher return.
d) Choices a and b.
e) All of the above.

problem 10: The optimal portfolio is recognized at the point of tangency between the efficient frontier and the:

a) Highest possible utility curve.
b) Lowest possible utility curve.
c) Middle range utility curve.
d) Steepest utility curve.
e) Flattest utility curve.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M93410

Have any Question? 


Related Questions in Management Theories

Written report - individual assessmentpurpose this

Written Report - individual assessment Purpose: This assessment is designed to reinforce the subject content and develop students' skills and application of knowledge of the subject content to business situations. Topic: ...

Themes performance measurements market conditions and

Themes: Performance Measurements, Market Conditions and Dashboard Design Read: Chapter 3 (Supply Chain Design and Planning) of Bookboon.com ebook, use this link and go to pages 30-49 of the ebookhttp://zums.ac.ir/files/r ...

Case study grouponread case study 5-10 groupon in chapter 5

Case Study: Groupon Read Case Study 5-10: Groupon in Chapter 5, page 333 of your text. In two to three pages, supported by evidence from your text and from other research (at least one resource is required), answer the f ...

Choose any existing company of your choice operating in

Choose any existing company of your choice operating in Singapore. The company can be from any industry. Imagine that you have been appointed as the Human Resource (HR) Manager of your chosen company. Your boss has asked ...

Career management recommendationthe purpose of the career

Career Management Recommendation The purpose of the Career Management paper is to provide you the opportunity to apply career management theory to enhance an organization's effectiveness Imagine you are an HR associate.  ...

Problem 11 formulate the equations to determine the optimal

Problem 1 1. Formulate the equations to determine the optimal shipments from each point of embarkation to each destination along this supply chain that will result in the minimum total shipment cost. 2. Solve the model u ...

Individual assignment reflective essaythe individual

Individual Assignment: Reflective Essay The individual written assignment will take the form of individual reflection upon some aspect of your personal experience of management and organisations. Throughout the module, a ...

Term paperyou will write an individual term paper on a

Term Paper: You will write an individual term paper on a topic of your choice. To find a topic I suggest you look at the chapters.  Pay attention to the major themes and concepts discussed in the chapters and ask what yo ...

Supply chain managementassignment informationthis

Supply Chain Management Assignment information: This assignment requires you to write a 2000 word original reportaddressing the following areas: Compare and analyse the supply chain of one service and one manufactured pr ...

Assignmentone of the reasons you were recently hired as the

Assignment One of the reasons you were recently hired as the manager of global supply chain was the continuing problems the firm faces with a number of its important suppliers of raw materials. Typical issues were late d ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro