Investment Strategies - Review Questions 6 - 11
- With respect to market timing,
- The potential for gain is unlimited.
- It is the single greatest determinant of a portfolio's performance.
- It is possibly quite expensive.
- Some have dubbed it 'closet rebalancing' of a portfolio.
- Possible disadvantages of a buy and hold strategy include:
- It is expensive.
- It subjects the portfolio to the risk of a single asset class, inadvertently driving that portfolio's risk and return.
- Implementation is complicated.
- The strategy is dynamic.
- An investor looking to hedge downside risk and preserve gain in a long stock position whilst minimizing transaction cost would pursue which of the following strategies:
- A debit spread.
- A strap.
- A zero-cost collar.
- A short straddle.
- In a long margin account, the investor's initial margin is:
- The debit balance/.75
- None of the foregoing.
- In a rising market, a short seller's loss is limited to:
- the amount borrowed.
- the decline in price.
- none of the above.
- DRIP plans entail which of the following risks:
- transaction costs could erode returns significantly.
- the investor may not be able to identify stocks with a history of significant dividend payouts.
- the strategy is complex.
- there are tax implications.
Stock AnalysisExamine the current state of Netflix Inc., and learn about three of the major fundamental risks that the company is currently facing.
Mutual Funds & ETFsLearn about the top three metals and mining exchange-traded funds (ETFs), and explore analyses of their characteristics and how investors can benefit from these ETFs.
ProfessionalsUnderstand the differences between a career in financial planning and wealth management, and identify which is better for you based on your goals and talents.
Mutual Funds & ETFsDiscover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability.
Mutual Funds & ETFsFind out why mutual funds are not insured by the FDIC, including why the FDIC was created and how to minimize your risk with educated mutual fund investments.
InvestingThe further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
Personal FinanceMany advisors display similar skillsets that can make distinguishing between them difficult. The following guidelines can help you better understand their qualifications and services.
ProfessionalsAmong the best universities for financial planning are the University of Georgia, Boston University, The College of Financial Planning, Texas Tech, San Diego State, Baylor, Fairleigh Dickinson ...
Investing BasicsDon’t skimp on the CFP designation. Here's why those three letters show that someone is qualified in financial and investment planning.
Mutual Funds & ETFsDiscover detailed analysis and information about some of the top exchange-traded funds (ETFs) that offer exposure to the investment-grade corporate bond market.
The excess return that investing in the stock market provides ...
The amount of risk that an insurance company retains after subtracting ...
Coverage that provides financial protection to investors, financial ...
The maximum loss from a peak to a trough of a portfolio, before ...
The absolute level of a fund's investments.
A technique used by insurance companies to calculate loss reserves.
Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic ... Read Full Answer >>
While your auto insurance company cannot pull your full motor vehicle report, or MVR, it does pull a record summary that ... Read Full Answer >>
While the majority of financial advisors work for financial institutions such as banks, a large proportion of them are self-employed ... Read Full Answer >>
The Federal Deposit Insurance Corporation, or FDIC, is a government-run agency that provides protection against losses if ... Read Full Answer >>
The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
The term delta refers to the change in price of an underlying stock or exchange-traded fund (ETF) as compared to the corresponding ... Read Full Answer >>