Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. How could you mitigate the negative size bias induced by the long-only constraint?
2. Imagine that you are a stock trader, and that a portfolio manager plans to measure your trading prowess by comparing your execution prices with volume-weighted average prices. How would you attempt to look as good as possible by this measure? Would this always coincide with the best interests of the manager?
Explain what Roll meant by the benchmark error, and identify the specific problem with this benchmark. In evaluating portfolio performance, describe the general procedure, with emphasis on the bench mark employed.
Calculate the annual holding return and annual holding yield of your portfolio and calculate the mean, variance, standard deviation, and coefficient of variation of your portfolio.
Is this differential satisfied by current market prices? If not, demonstrate an arbitrage trade to take advantage of the mispricing.
Calculate both the Treynor measure and the Sharpe measure for both Portfolio X and the S&P 500. Briefly explain whether Portfolio X underperformed, equaled, or outperformed the S&P 500.
Using book value to measure profitability and to value a company's stock has limitations. Discuss five such limitations from an accounting perspective. Be specific.
What are the new expected returns for Stocks D and E? Suppose now that the risk premium for Factor 1 that you calculated in Part a suddenly increases by 0.25%.
Briefly describe two CFA Institute Standards of Professional Conduct that apply to Clark. Identify and briefly explain two CFA Institute Standards of Professional Conduct that apply to this situation.
The fund manager earns an incentive fee only if the fund is above the high watermark of the maximum portfolio value since the inception of the fund - Consider a hedge fund whose annual fee structure has a fixed fee and an incentive fee
Explain the relationship between the timing of the sales charge and your investment horizon. In general, if you intend to hold your position for a long time, which fee arrangement would you prefer?
Explain how a given investor chooses an optimal portfolio. Will this choice always be a diversified portfolio, or could it be a single asset? Explain your answer.
Calculate the standard deviation of an equal-weighted portfolio under the following four cases: (a) perfect positive correlation, (b) perfect negative correlation, (c) zero correlation, and (d) a correlation of 0.3.
If the risk-free rate is 3.9 percent and the expected market risk premium (i.e., E(RM) - RFR) is 6.1 percent, calculate the expected return for each mutual fund according to the CAPM.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd