文档介绍：CHAPTER 17 EQUITY - PORTFOLIO MANAGEMENT TRUE/FALSE QUESTIONS
CHAPTER 17
EQUITY-PORTFOLIO MANAGEMENT
TRUE/FALSE QUESTIONS
(f) 1 Active equity portfolio management is a long-term buy-and-hold strategy1>.
(t) 2 A benchmark portfolio is defined as a passive portfolio whose average characteristics match the client's risk-return objectives.
(t) 3 The goal of a passive portfolio is to track the index as closely as possible.
(f) 4 An advantage of sampling is that portfolio returns will not track the index as closely as with full replication.
(f) 5 An advantage of quadratic programming is that it relies on historical correlations.
(t) pleteness funds are portfolios designed plement active portfolios that do not cover the entire market.
(t) 7 Style investing involves constructing portfolios in such a way to capture one or more of the characteristics of equity securities.
(f) 8 Following an earnings momentum strategy, an investor acquires stocks that have enjoyed above-market stock price increases.
(t) 9 Growth stocks favor industries such as technology and discretionary consumer (such as retail outlets and restaurants).
(f) 10 Growth stocks consistently outperform value stocks.
(t) 11 Contrarians invest in beaten-down stocks that usually have poor consensus earnings forecasts.
(f) 12 It does not make economic sense for portfolio managers to try to ;time; between different investment styles.
(f) 13 Futures and options can be used to help control cash inflows and outflows, but only in actively managed portfolios.
(t) 14 By selling enough futures contracts, the portfolio's beta can be reduced to zero.
(f) 15 Investors should purchase market index put options if they anticipate an increase in the index value.
(t) 16 Futures and options can be used to hedge currency exposures in international equity portfolios.
(t) 17 The basic differences between asset allocation strategies is whether they rely on current market expectations or long-run projections