标题: Reading 31: Equity Portfolio Management-LOS g [打印本页]
作者: tycoon 时间: 2008-9-16 10:10 标题: [2008] Session 10-Reading 31: Equity Portfolio Management-LOS g
CFA Institute Area 8-11, 13: Asset Valuation
Session 10: Equity Portfolio Management
Reading 31: Equity Portfolio Management
LOS g: Explain and justify the use of equity investment style classifications and discuss the difficulties in applying style definitions consistently.
作者: tycoon 时间: 2008-9-16 10:11
Which of the following is most accurate regarding growth stocks? Growth stocks are likely to:
A) | outperform during an economic contraction and outperform during an economic expansion. |
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B) | underperform during an economic contraction and underperform during an economic expansion. |
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C) | outperform during an economic contraction and underperform during an economic expansion. |
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D) | underperform during an economic contraction and outperform during an economic expansion. |
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Answer and Explanation
Growth stocks are more likely to outperform during a recession as there are few other firms with growth and a premium would be priced into growth stock valuation. During an expansion, many firms are doing well and the valuation premiums for growth stocks may decline.
作者: tycoon 时间: 2008-9-16 10:12
Which of the following is the primary risk of a market-oriented equity investing approach?
A) | The portfolio must outperform broad market averages or investors will switch to low cost indexing strategies. |
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B) | The tilt to value is too strong. |
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C) | The tilt to growth is too strong. |
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D) | The model to uncover GARP is flawed. |
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Answer and Explanation
Market-oriented investors have portfolios that resemble a broad market average over time. The risk for a market-oriented manager is that he or she must outperform a broad market index or investors will use lower cost indexing strategies. Although a poor growth at a reasonable price (GARP) model would be a concern for this subset of market-oriented equity investing, it is not the primary risk of market-oriented equity investing.
作者: tycoon 时间: 2008-9-16 10:12
Which of the following is least likely to be a rationale for investing in small cap stocks?
A) | Smaller firms are more likely to be underpriced than larger cap stocks with greater coverage. |
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B) | Small-cap stocks are likely to have higher growth in the future. |
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C) | Higher returns are more likely when starting from a smaller stock price base. |
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D) | The higher betas for small cap stocks indicate that their future returns should be higher. |
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Answer and Explanation
Although small-cap stocks may have a higher beta, this is not given as a rationale for investing in them. The other three responses indicate the most common rationales for investing in these stocks.
[此贴子已经被作者于2008-9-18 17:22:00编辑过]
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