Reading 23: Capital Market Expectations－LOS d

setting, capital, market, methods, survey

CFA Institute Area 6: Economics
Session 6: Economic Concepts for Asset Valuation in Portfolio Management
Reading 23: Capital Market Expectations
LOS d: Explain the use of survey and panel methods and judgment in setting capital market expectations.

tycoon

游客

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 2008-9-12 14:55 | 只看该作者

Which of the following describes a method of setting capital market expectations where a consistent set of experts is asked for their opinion regarding the future?

A)	A panel method.

B)	An algorithmic method.

C)	A market-adjusted algorithmic method.

D)	A shrinkage estimator.

Answer and Explanation

Capital market expectations can also be formed using surveys. If the group polled is fairly constant over time, this method is referred to as a panel method.

TOP

tycoon

游客

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 2008-9-12 14:56 | 只看该作者

Which of the following regarding the setting of capital market expectations is least accurate?

A)	Capital market expectations can also be formed using surveys.

B)	When a survey uses a consistent set of experts, the method is referred to as panel method.

C)	Quantitative models should not be adjusted for an analysts subjective opinions.

D)	Judgment can be applied to project capital market expectations.

Answer and Explanation

Although quantitative models provide objective numerical forecasts, there are times when an analyst must adjust those expectations using their insight to improve upon those forecasts.

TOP

tycoon