Which of the following stocks would be considered defensive?
A. Automobile manufacturer
B. Pharmaceutical manufacturer
C. Gold mining company
D. Computer software developer
Answer: B
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Portfolio Analysis
- The alpha coefficient is a measure of:
- Common shares of which of the following issuers are likely to have a Beta coefficient much lower than +1?
- Which of the investments listed below offers the greatest protection against market risk?
- The risk inherent in a portfolio that can be diversified away is known as:
- The Capital Asset Pricing Model (CAPM) would identify the most efficient investments as those with the:
- "CAPM" stands for:
- The market theory that states that technical and fundamental analysis is of no use in selecting stocks for a portfolio is known as the:
- A constant ratio investment plan is one which:
- A constant dollar investment plan requires:
- A trader liquidates an exchange listed stock position and invests the proceeds in an exchange listed stock index fund. The trader has reduced which risk?
- If a portfolio manager's market sentiment is bearish, then which of the following are appropriate actions?
- An older female customer, in the lowest tax bracket, wants an investment that will provide asset growth for retirement. The best recommendation would be:
- A young couple in a low tax bracket have 2 young children and they want to start saving for the kids' college education. The best recommendation would be:
- A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to:
- A customer has an existing portfolio that is mainly invested in high quality corporate bonds for stable income. As market interest rates have dropped, the customer's income has declined and she would like to reallocate part of the portfolio to corporate bonds that offer potential growth. The best recommendation is to buy:
- If one asset class greatly underperforms another class in an asset allocation plan, the portfolio must be:
- Which of the following are appropriate investment strategies for a client with a 20-year time horizon?
- The portfolio management technique that uses a market index as a performance benchmark that the asset manager must exceed is called:
- Which of the following investment portfolios is LEAST liquid?
- Defensive stocks included in a portfolio's construction will minimize exposure to:
- Diversification of a portfolio among asset classes:
- Rank the following investments from lowest to highest, for overall historical returns experienced by investors over long periods of time:
- If 26 week T-bills are yielding 5%, all common stocks are yielding 10%, and growth stocks are yielding 15%, the risk premium for investing in growth stocks is:
- Which of the following best describes a stock that does not move with the market?
- Which of the following securities are directly interest rate sensitive?