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CFA Institute CFA-Level-III Exam Questions
Prepare CFA Institute CFA-Level-III Exam Questions
Question No 1:
HAS THREE PARTS FOR A TOTAL OF 23 MINUTES Aaron Bell, a portfolio manager, is focusing his attention on investment style, and whether style should be a factor in investment decision making. Bell decides to play it safe and investigate how he can use different instruments related to style indices or indexing strategies to see if he can add value to his customers’ portfolios.
A. Explain holdings-based style analysis. Discuss one disadvantage of holdings-based style analysis and one advantage over returns-based style analysis.
B. Explain returns-based style analysis. Reproduce the general form of the regression equation used for returns-based style analysis, including any constraints, and label each component of the equation. Discuss one disadvantage of returns-based style analysis and one advantage over holdings- based style analysis.
C. Bell is considering indexing strategies and a colleague has suggested three alternatives: full replication; stratified sampling; and optimization. Explain each along with the conditions under which each would be appropriate to use and provide one disadvantage for each.
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Question No 1:
HAS THREE PARTS FOR A TOTAL OF 23 MINUTES Aaron Bell, a portfolio manager, is focusing his attention on investment style, and whether style should be a factor in investment decision making. Bell decides to play it safe and investigate how he can use different instruments related to style indices or indexing strategies to see if he can add value to his customers’ portfolios.
A. Explain holdings-based style analysis. Discuss one disadvantage of holdings-based style analysis and one advantage over returns-based style analysis.
B. Explain returns-based style analysis. Reproduce the general form of the regression equation used for returns-based style analysis, including any constraints, and label each component of the equation. Discuss one disadvantage of returns-based style analysis and one advantage over holdings- based style analysis.
C. Bell is considering indexing strategies and a colleague has suggested three alternatives: full replication; stratified sampling; and optimization. Explain each along with the conditions under which each would be appropriate to use and provide one disadvantage for each.
Answer: 0
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Information About CFA Institute CFA-Level-III Exam
Vender: CFA Institute
Exam Code: CFA-Level-III
Exam Name: CFA Level III Chartered Financial Analyst
Number Of Questions: 472
Certification Name: CFA Level III
Exam Language: English
Questions Type: MCQs
Material Format: PDF & Web Practice Test Software