Investment Management - Investment Management MCQ
- Option : B
- Explanation : After having determined the investor objectives and constraints, a strategic asset allocation is developed which specifies the percentage allocations to the included asset classes.
- Option : C
- Explanation : Tactical asset allocation is the decision to deliberately deviate from the policy exposures to systematic risk factors with the intent to add value based on forecasts of the near-term returns of those asset classes.
- Option : B
- Explanation : The core–satellite approach to constructing portfolios is defined as “investing the majority of the portfolio on a passive or low active risk basis while a minority of the assets is managed aggressively in smaller portfolios.”
- Option : B
- Explanation : Information related to strategic asset allocation and portfolio rebalancing policy would be placed in the appendices of an investment policy statement.
30. Which of the following factors is least likely to impact the risk-taking ability of a client?
- Option : B
- Explanation : An individual‟s ability to take risk is impacted by such factors as time horizon and expected income. Personality type is most likely to impact an individual‟s willingness to take risk.
