List the two important decisions in asset allocation

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1. List the two important decisions in asset allocation on building a portfolio.

2. List four items you should include in return requirement for an educational endowment fund.

3. Distinguish between strategic and tactical asset mix.

4. Choose one type of an investment company and outline (write 5 separate lines) its major characteristics. 

5. What is the benefit of investing in the income share of a dual fund?

6. If you sell shares of a mutual fund at 11 AM, do you get or receive the price at 11 AM or 4 PM?

7. If two investments have a correlation of (-1) you can reach a portfolio with a zero risk as measured by standard deviation. Is this true or false and explain.

8. Calculate the mean (average return), variance and standard deviation of a portfolio consisting of 60% in A and 40% in B. Show your work in detail.

Security

Return

Standard Deviation

Allocation

Correlation

 A

 12%

 16%

 60%

 Correlation

Between A and B = 0.70

 B

 8%

 10%

 40%

Reference no: EM133116893

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