Question 1

A constant- ratio plan requires an investor to continually rebalance the portfolio.

Accepted Answer

A) True 
 B)False

Question 2

Formula plans are high- risk investment strategies that attempt to benefit from cyclical price movements.

Accepted Answer

A) True 
 B)False

Question 3

When using a constant-dollar plan?

Accepted Answer

A)  The percentage of funds in the speculative portion of the portfolio should increase over time. 
B)  The ratio of safe funds to speculative funds remains constant over time. 
C)  Gains from the speculative portion of the portfolio are transferred to the safe portion of the portfolio. 
D)  The amount of money in the speculative portion of the portfolio should decline over time. 
A)  The percentage of funds in the speculative portion of the portfolio should increase over time. 
B)  The ratio of safe funds to speculative funds remains constant over time. 
C)  Gains from the speculative portion of the portfolio are transferred to the safe portion of the portfolio. 
D)  The amount of money in the speculative portion of the portfolio should decline over time.

Question 4

Utility shares are often suitable for low- risk, current- income- oriented portfolios.

Accepted Answer

A) True 
 B)False

Question 5

Once you establish a portfolio designed to achieve your investment goals, you can relax and forget about your investments until such time as you need the funds.

Accepted Answer

A) True 
 B)False

Question 6

The ASX 100 Index is an appropriate benchmark for

Accepted Answer

A)  diversified portfolios of large company shares. 
B)  diversified portfolios of mid- cap and small company shares. 
C)  diversified portfolios with a mix of large, small, and mid- cap shares. 
D)  portfolios diversified among several asset classes such as shares, bonds, and real estate. 
A)  diversified portfolios of large company shares. 
B)  diversified portfolios of mid- cap and small company shares. 
C)  diversified portfolios with a mix of large, small, and mid- cap shares. 
D)  portfolios diversified among several asset classes such as shares, bonds, and real estate.

Question 7

Sharpe's measure, Treynor's measure, and Jensen's measure all focus on non- diversifiable risk.

Accepted Answer

A) True 
 B)False

A constant- ratio plan requires an investor to continually rebalance the portfolio.

Formula plans are high- risk investment strategies that attempt to benefit from cyclical price movements.

When using a constant-dollar plan?

Utility shares are often suitable for low- risk, current- income- oriented portfolios.

Once you establish a portfolio designed to achieve your investment goals, you can relax and forget about your investments until such time as you need the funds.

The ASX 100 Index is an appropriate benchmark for

Sharpe's measure, Treynor's measure, and Jensen's measure all focus on non- diversifiable risk.

The Investment Environment

Markets and Transactions

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Shares

Analysing Shares

Share Valuation

Technical Analysis, Market Efficiency and Behavioural Finance

Fixed-Income Securities

Bond Valuation

Managed Funds: Professionally Managed Portfolios

Options: Puts and Calls

Commodities and Financial Futures

Filters

Exam 13: Managing Your Own Portfolio

A constant- ratio plan requires an investor to continually rebalance the portfolio.

Formula plans are high- risk investment strategies that attempt to benefit from cyclical price movements.

When using a constant-dollar plan?

Utility shares are often suitable for low- risk, current- income- oriented portfolios.

Once you establish a portfolio designed to achieve your investment goals, you can relax and forget about your investments until such time as you need the funds.

The ASX 100 Index is an appropriate benchmark for

Sharpe's measure, Treynor's measure, and Jensen's measure all focus on non- diversifiable risk.

The Investment Environment

Markets and Transactions

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Shares

Analysing Shares

Share Valuation

Technical Analysis, Market Efficiency and Behavioural Finance

Fixed-Income Securities

Bond Valuation

Managed Funds: Professionally Managed Portfolios

Options: Puts and Calls

Commodities and Financial Futures

Filters