Question 1

The scope and purpose section of an Investment Policy Statement for individual investors typically consists of defining the

Accepted Answer

A) return, distribution, and risk requirements. 
B) process for review of the IPS. 
C) appropriate metrics for risk measurement. 
D) relevant constraints. 
E) context, investor, and structure. 
A) return, distribution, and risk requirements. 
B) process for review of the IPS. 
C) appropriate metrics for risk measurement. 
D) relevant constraints. 
E) context, investor, and structure.

Question 2

Discuss investments as a hedge against inflation

Accepted Answer

Perfect hedges against inflation are vir

Question 3

Genny Webb is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan.Each year she contributes $2,000 to the plan and her employer contributes an equal amount.Genny thinks she will retire at age 63 and figures she will live to age 90.The plan allows for two types of investments.One offers a 3% risk-free real rate of return.The other offers an expected return of 12% and has a standard deviation of 39%.Genny now has 20% of her money in the risk-free investment and 80% in the risky investment.She plans to continue saving at the same rate and keep the same proportions invested in each of the investments.Her salary will grow at the same rate as inflation. How much can Genny expect to have in her risky account at retirement

Accepted Answer

A) $1,800,326 
B) $1,905,095 
C) $1,743,781 
D) $1,224,651 
E) $345,886 
A) $1,800,326 
B) $1,905,095 
C) $1,743,781 
D) $1,224,651 
E) $345,886

The scope and purpose section of an Investment Policy Statement for individual investors typically consists of defining the

Discuss investments as a hedge against inflation

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Filters

Exam 28: Investment Policy and the Framework of the Cfa Institute

The scope and purpose section of an Investment Policy Statement for individual investors typically consists of defining the

Discuss investments as a hedge against inflation

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Filters