Investment Strategies - Review Questions 12 - 16
- Tactical asset allocation differs from strategic asset allocation:
- In that it provides the overall framework for implementation pursuant to the IPS.
- In that it involves shifts in the overall allocation, but only within the context of the strategic allocation in an effort to exploit short term market inefficiencies.
- May impact return.
- Both b. and c.
- Risks of rebalancing include all of the following:
- Additional transaction costs.
- Added tax liability.
- The consistent application of the client's strategic asset allocation.
- All of the foregoing.
- Hedging and monetization strategies include all of the following, EXCEPT:
- Use of variable prepaid forwards.
- Gradual sale of shares over time.
- Use of a separate account for increase diversification.
- Exchange traded fund.
- Strategic asset allocation may be implemented through any of the following means, except:
- Index funds.
- Separate account managers.
- Tax deferred retirement accounts.
- Core plus approach.
- The risks of not addressing low basis stock include:
- Severe tax liability.
- Heightened volatility due to lack of diversification.
- Effective risk-management.
- Both a. and b.
Investing BasicsBuying below the margin of safety minimizes the risk to the investor.
Mutual Funds & ETFsFind out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
Mutual Funds & ETFsFind out about the Guggenheim Enhanced Short Duration ETF, and learn detailed information about this fund that focuses on fixed-income securities.
Mutual Funds & ETFsFind out about the Shares Morningstar Small-Cap Value ETF, and learn detailed information about this exchange-traded fund that focuses on small-cap equities.
Mutual Funds & ETFsFind out about the iShares MSCI KLD 400 Social exchange-traded fund, and learn detailed information about its characteristics, suitability and recommendations.
Mutual Funds & ETFsFind out about the Guggenheim BulletShares 2018 High Yield Corporate Bond ETF, and get information about this ETF that focuses on high-yield corporate bonds.
Mutual Funds & ETFsFind out about the PowerShares DWA SmallCap Momentum Portfolio ETF, and explore detailed analysis the fund's characteristics, suitability and recommendations.
Mutual Funds & ETFsLearn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
Mutual Funds & ETFsFind out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
Mutual Funds & ETFsLearn about the Vanguard Total World Stock exchange-traded fund, which invests in stocks located in numerous countries with a high level of diversification.
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