In classic relative-value analysis the top-down approach refers to: | A) | ranking the holdings in a corporate bond portfolio according to the relative market value of each asset class, beginning with the highest value. |
| B) | using large-scale economic information to allocate funds to various corporate asset classes. |
| | C) | ranking the holdings in a corporate bond portfolio according to the risk of each asset class, beginning with the least risky. |
| | D) | looking for undervalued assets and ranking them from most to least undervalued. |
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Answer and Explanation
Large scale (i.e. macro) economic information concerns data such as inflation, interest rate changes, and the level and direction of the overall economy (both domestic and foreign). Top-down analysis seeks to allocate funds to those issues that would benefit the most from the expected large-scale economic changes/trends.
Large scale (i.e. macro) economic information concerns data such as inflation, interest rate changes, and the level and direction of the overall economy (both domestic and foreign). Top-down analysis seeks to allocate funds to those issues that would benefit the most from the expected large-scale economic changes/trends. | 
发表于 2008-9-15 14:46
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