Portfolio management Flashcards
(127 cards)
1
Q
What is the portfolio approach
A
2
Q
What is the diversification ratio
A
3
Q
What is the efficient frontier and the limits to diversification
A
4
Q
What are the 3 steps in the portfolio management process
A
5
Q
Describe the planning step
A
6
Q
Describe the execution step
A
7
Q
Describe the feedback step
A
8
Q
Who are individual and institutional investors
A
9
Q
What are the two types of pension plans
A
10
Q
Breakdown of active vs passively managed assets
A
11
Q
What are the typical ownership structures of asset management firms and trends
A
12
Q
What are the characteristics of mutual funds
A
13
Q
Explain ETF’s
A
14
Q
What is a SMA
A
15
Q
What are hedge funds and buyout and venture capital funds
A
15
Q
What is holding period return and arithmetic mean
A
16
Q
What is geometric return
A
17
Q
What is money weighted return
A
18
Q
What is the time weighted return
A
19
Q
What is annualised return formula
A
19
Q
Difference between gross and net returns
A
20
Q
Real returns and pre and post tax nominal returns
A
21
Q
Leveraged returns
A
22
Q
Variance and standard deviation formula
A
23
Formula for asset variance, asset covariance and portfolio variance
24
Portfolio variance formula and example of two asset
25
Explain the types of risk aversion
26
Describe risk tolerance and the formula for utilty with risk aversion
27
What does the utility with risk aversion assume and what conclusions can be made
28
What do indifference curves show?
29
What is the capital allocation line, CAPM formula and what does slope mean
30
What are the first four rules for diversification
31
Rules 5 and 6 for diversification
32
What is the efficient frontier and what is the optimal portfolio
P is the optimal portfolio
33
What is the two fund separation theorem, the investment decision and the financing decision
34
Number of covariance in a portfolio of n assets
35
Explain and intepret the CAL, Markowitz EF
36
What are the assumptions of homogenous expecations?
37
What is the capital market line and market price of risk slope
38
What is non-systematic risk?
39
Why is their no incremental reward for bearing unsystematic risk
40
What is capital market theoery
41
What is a multi-factor model to predict expected returns
42
What is a single index model
43
What is the formula for beta
44
What are the six assumptions of capm?
45
Methods of portfolio performance evaluation
46
Based on the SML how to detrmine whether a security is over or undervalued?
47
What is the security charactheristic line
48
What is an IPS and what stage does it occur at?
49
What is the purpose of an IPS
50
What are the nine components of an IPS
51
What are asbolute and relative risk objectives
52
What are the risk objectives of an instiution?
53
What are absolte and relative return objectives?
54
What are the restraints on the investor
55
What is strategic asset allocation?
56
What are the steps towards and actual portfolio
57
What are the ESG considerations
58
Compare the categorization of behavioural biases and what defines the two categories
59
What is belief perseverance bias
60
What is conservatism bias
61
What is confirmation bias
62
What is representative bias
c) Representative bias/ tendency to classify new information based on
past experiences and classifications
(e.g. stereotyping)
63
What is illusion of control bias
64
What is hindisght bias
65
What are processing errors and what is anchoring bias
66
What is mental accounting bias
67
What is framing bias
68
What is behavioural bias
69
What is loss aversion bias
70
What is overconfidence bias
71
What is self control bias
72
What is status quo bias
73
What is endowment bias
74
What is regret aversion bias
75
What are market anaomalies and what is momentum
76
What biases are associated with bubbles and crashes
77
What is the value anomaly
78
What is risk?
79
What is risk exposure
80
What is risk management and the four main elements of it?
81
What does a risk mangement framework cover?
82
What is risk governance and identification and management?
83
What is risk infrastructure and policies and processes
84
Describe risk monitoring, mitigating, and mangement, communications and Strategic analysis integration
85
What are the benefits of Strategic analysis integration
86
What is risk governance?
87
What is risk tolerance?
88
What is risk budgeting?
89
What are the financial sources of risk?
90
What are the non-financial sources of risk?
91
What is individual risk and when there are interactions between types of risk?
92
Types of risk metrics: derivative and bond
93
What VAR?
94
Describe risk modifications - prevention, acceptance and transfer
95
Risk modifications - transfer and shifting
96
Risk modifications - transfer and shifting
97
What is TA, the logic behind it and the principles/assumptions?
98
Describe the links between behavioural finance and TA?
99
What is the difference between FA and TA?
100
What can line and bar charts tell us in TA?
101
Describe how different scales, volume and time scale can provide information
102
What is relative strength and how is it used?
103
Describe different types of trends: Uptrend, downtrend, breakdown, support, resistance, breakout
104
What chart patterns and reversal trends, H&S and inverse H&S
105
What double tops/bottoms and their properties
Double Tops/Bottoms
- the greater the number of tops/bottoms, the longer
the time interval over which this occurs, the more significant
the pattern
- bottoms tend to be more stable predictors than tops
106
What are continuation patterns and triangles
107
What are rectangles?
108
What are technical indicators and describe moving average?
109
What are bollinger bands?
110
at are momentum oscillators and a ROC oscillator
111
What is the relative strength index?
112
What is stochacthic oscillator?
113
What is a MACD?
114
What are sentiment indicators and their types?
115
Describe intermarket analysis?
116
How is TA applied to portfolio management?
117
What is Fintech and the five components of it?
118
Describe big data characteristics and main sources
119
3 main sources of alternative data
120
What is AI and machine learning?
121
What is text analytics and natural language processing
122
What are robo-advisory services, Algo trading and risk analytics
123
What is distributed ledger technology
124
What is block chain?
125
What are permissionless networks and their applications?
