Q1. Which of the following concerning the steps in the portfolio management process is least accurate?

FOCUS                                                 ACTIONS

A) Implementation                                Current and future market conditions     Identify risk tolerance

B) Monitoring                                         Feedback loop  Update investor’s needs

C) Investment strategy                         Short-term and intermediate term market expectations  Construct a strategy based on the policy statement

Q2. Which of the following is least likely part of the portfolio-management process?

A)   limiting the portfolio’s tax liability.

B)   identifying the investor’s goals and constraints.

C)   rebalancing the portfolio.

Q3. Which of the following statements about the steps in the portfolio management process is FALSE?

A)   Rebalancing the investor’s portfolio is done on an as-needed basis, and should be reviewed on a regular schedule.

B)   Developing an investment strategy is based on an analysis of historical performance in financial markets and economic conditions.

C)   Implementing the plan is based on an analysis of the current and future forecast of financial and economic conditions.

Q4. Which of the following is NOT one of the four general steps in the portfolio management process?

A)   Monitoring and updating the investor’s needs and market conditions.

B)   Specifying strategic asset allocations.

C)   Implementing the plan.

Q5. Which of the following is generally the first general step in the portfolio management process?

A)   Develop an investment strategy.

B)   Specify capital market expectations.

C)   Write a policy statement.

答案和详解如下：

Q1. Which of the following concerning the steps in the portfolio management process is least accurate?

FOCUS                                                 ACTIONS

A) Implementation                                Current and future market conditions     Identify risk tolerance

B) Monitoring                                         Feedback loop  Update investor’s needs

C) Investment strategy                         Short-term and intermediate term market expectations  Construct a strategy based on the policy statement

Correct answer is A)

The implementation process focuses on putting the plan that has been devised to work. The portfolio is constructed and assets are allocated based on the investment strategy and market forecasts. The identification of the risk tolerance should be accomplished during the development of the investor’s policy statement, which should occur prior to the implementation of the investment plan.

Q2. Which of the following is least likely part of the portfolio-management process?

A)   limiting the portfolio’s tax liability.

B)   identifying the investor’s goals and constraints.

C)   rebalancing the portfolio.

Correct answer is A)

Limiting the tax liability may be a wise move depending on an investor’s circumstances, but it should not be the primary objective of the portfolio management process. Satisfying the investor’s risk, return, liquidity, and other constraints are primary objectives. Addressing the tax liability should be addressed after the primary objectives have been satisfied. Rebalancing the portfolio is part of the “monitor and update” step. Identifying goals and restraints is part of the “write a policy statement” step.

Q3. Which of the following statements about the steps in the portfolio management process is FALSE?

A)   Rebalancing the investor’s portfolio is done on an as-needed basis, and should be reviewed on a regular schedule.

B)   Developing an investment strategy is based on an analysis of historical performance in financial markets and economic conditions.

C)   Implementing the plan is based on an analysis of the current and future forecast of financial and economic conditions.

Correct answer is B)

Developing an investment strategy is based primarily on an analysis of the current and future financial market and economic conditions. Historical analysis serves to help develop an expectation for future conditions.

Q4. Which of the following is NOT one of the four general steps in the portfolio management process?

A)   Monitoring and updating the investor’s needs and market conditions.

B)   Specifying strategic asset allocations.

C)   Implementing the plan.

Correct answer is B)

Specifying strategic asset allocations is a specific step contained within the third step, implementing the plan.

Q5. Which of the following is generally the first general step in the portfolio management process?

A)   Develop an investment strategy.

B)   Specify capital market expectations.

C)   Write a policy statement.

Correct answer is C)         

The policy statement is the foundation of the entire portfolio management process. Here, both risk and return are integrated to determine the investor’s goals and constraints.

thanks

O(∩_∩)O谢谢

thanks