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Q7. After Nack rebalances Portfolio A the first time, its bond holdings should:
A) rise by $1,600.
B) rise by $11,350.
C) decline by $1,550.
Q8. Wallace is a:
A) passive trader.
B) liquidity-motivated trader.
C) value-motivated trader.
Q9. The owner of Portfolio B appears least concerned about:
A) income.
B) liquidity.
C) volatility.
Q10. After rebalancing Portfolio A the second time, if Nack’s goal is to maximize return potential while limiting potential loss of principal, her best rebalancing strategy is:
A) constant mix.
B) constant proportion.
C) buy and hold.
Q11. When Nack rebalances Portfolio A the second time, the portfolio’s stock allocation is most likely to fall by:
A) 3.33%.
B) 3.11%.
C) 6.45%.
Q12. Which of the following strategies is also referred to as insured asset allocation?
A) Constant proportion portfolio insurance (CPPI).
B) Constant mix.
C) Concave strategy.
Q13. Which of the following statements regarding the risk consequences of asset allocation strategies is FALSE?
A) With a buy and hold strategy, the investor's tolerance for risk is zero if the value of the investor's assets falls below the floor value.
B) Constant proportion portfolio insurance (CPPI) actively assumes risk tolerance is directly related to wealth.
C) Constant mix actively assumes risk tolerance is directly related to wealth.
Q14. Which of the following statements about asset allocation strategies is TRUE?
A) Constant mix outperforms buy and hold when stock market reversals occur.
B) Constant mix outperforms buy and hold when stock market reversals do not occur.
C) Constant mix is a convex strategy.
Q15. In a trending market, which asset allocation strategy outperforms?
A) Constant mix.
B) Constant proportion portfolio insurance (CPPI).
C) Buy and hold.
Q16. In a flat but oscillating market, which asset allocation strategy outperforms?
A) Constant mix.
B) Buy and hold.
C) Constant proportion portfolio insurance (CPPI). | 
发表于 2009-4-10 13:04
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