Difference between asset allocation and security selection

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Reference no: EM133115990

How does Sarbanes-Oxley improve the quality of information in the markets?

What is the difference between asset allocation and security selection?

If markets are efficient, are you more likely to hire an active or passive manager to oversee your portfolio? Why?

Moral hazard is a situation where people tend to take greater risk because the costs will not be felt by the party taking the risk. Explain the moral hazard in banks that securitize sub-prime mortgages they underwrite vs. holding onto the loans?

What is a financial intermediary? Provide four examples and explain how each of them functions as an intermediary.

The Dow Jones Index is the most well-recognized index. Yet despite its popularity, why do investment professionals consider it a dubious proxy for the US stock market?

What is the difference between active vs. passive management?

If markets are efficient then what does this say about the expected value of active management when it comes to security selection? Why?

Reference no: EM133115990

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