首页 | 学习中心 | 注册 登录
返回列表 发帖
tycoon

UID
13121 
帖子
2234 
主题
427 
注册时间
2005-11-8 
最后登录
2015-10-28 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2008-9-17 15:49 | 只看该作者

Reading 41: Execution of Portfolio Decisions－LOS a

price, market, contrast, including, execution
CFA Institute Area 3-5, 7, 12, 14-18: Portfolio Management
Session 14: Execution of Portfolio Decisions
Reading 41: Execution of Portfolio Decisions
LOS a: Compare and contrast market orders to limit orders, including the price and execution uncertainty of each.
收藏 分享

tycoon

UID
13121 
帖子
2234 
主题
427 
注册时间
2005-11-8 
最后登录
2015-10-28 
2#
发表于 2008-9-17 15:50 | 只看该作者

A market order has:

A)execution uncertainty but not price uncertainty.
B)
price uncertainty but not execution uncertainty.
C)both price uncertainty and execution uncertainty.
D)neither price uncertainty nor execution uncertainty.

Answer and Explanation

A market order is an order to execute the trade immediately at the best possible price. The emphasis in a market order is the speed of execution (the reduction of execution uncertainty). The disadvantage of a market order is that the price it will be executed at is not known ahead of time, it thus has price uncertainty.

TOP

tycoon

UID
13121 
帖子
2234 
主题
427 
注册时间
2005-11-8 
最后登录
2015-10-28 
3#
发表于 2008-9-17 15:51 | 只看该作者

A limit order has:

A)price uncertainty but not execution uncertainty.
B)
execution uncertainty but not price uncertainty.
C)both price uncertainty and execution uncertainty.
D)neither price uncertainty nor execution uncertainty.

Answer and Explanation

A limit order is an order to trade at the best possible price, subject to the price satisfying the limit price. A limit order emphasizes the price of execution (the reduction of price uncertainty). It however, may not be filled immediately and may even go unfilled or partially unfilled. A limit order thus has execution uncertainty.

TOP

tycoon

UID
13121 
帖子
2234 
主题
427 
注册时间
2005-11-8 
最后登录
2015-10-28 
4#
发表于 2008-9-17 15:51 | 只看该作者

A trader submits a buy order that specifies that the trade must be executed at $40 by the end of the day. The execution price is $39.88. What type of order has the trader executed?

A)
A limit order.
B)A market order.
C)A principal order.
D)A portfolio order.

Answer and Explanation

A limit order is an order to trade at the best possible price, subject to the price satisfying the limit price. For buy orders, the execution price (here $39.88) must be lower or equal to the limit price (here $40). Limit orders also have an expiration date, beyond which they expire.

TOP

tycoon

UID
13121 
帖子
2234 
主题
427 
注册时间
2005-11-8 
最后登录
2015-10-28 
5#
发表于 2008-9-17 15:52 | 只看该作者

In which of the following markets would the calculation of market impact costs be inappropriate?

A)Auction markets.
B)Automated auctions.
C)
Electronic crossing networks.
D)Electronic limit-order markets.

Answer and Explanation

In an electronic crossing network, orders are executed at the average of the bid and ask quotes. Prices do not adjust based on supply and demand.

TOP

返回列表