A money manager who crafts portfolios using all of Standard & Poors sector index exchange traded funds (ETFs), aggressively overweighting and underweighting sectors, follows what investment strategy? A) Semi-active. B) Active. C) Passive. D) Market neutral. Horace Cline buys large-cap stocks and shorts S&P 500 Index futures. What investment strategy does Cline practice? A) Growth. B) Passive. C) Active. D) Semi-active.
A and C? I really need to revise PM . Seems like i forget stuff as soon as i shut the book
ooo. Tricky I think they are both active, although the first one might be semi-active (as he’s not selecting securities), and the second one is probably more market neutral. B), C)
Your answer: B was incorrect. The correct answer was A) Semi-active. Semi-active strategies involve using indexes as the underlying investments, but trying to add value through some active management. In this case, the manager starts with index ETFs, but actively adjusts the allocation. He is a semi-active manager. Your answer: D was incorrect. The correct answer was C) Active. Cline uses index futures, but that does not make him an indexer. By purchasing stocks and shorting the index, Cline is trying to take the indexs movements out of the equation, leveraging the alpha from his stock picks. He is an active manager. We do not have enough information to determine whether Cline is a growth or value investor.
dinesh…i chose the same as you… i hate PM…just hate it
**aggressively overweighting and underweighting sectors** What do you choose when they give you this? Active, right?..the Answer being otherwise
dude…did you sleep at all?? you were posting here till 7 am…not its’ 11 something and you’re already awake? what you taking !!?
mumukada Wrote: ------------------------------------------------------- > dude…did you sleep at all?? > you were posting here till 7 am…not its’ 11 > something and you’re already awake? > > what you taking !!? Sounds like it’s snowing out East? Dinesh, no more Hollywoods, get some sleept bruv!
Weekend is the only time I get to study a bit, with weekdays are soooo very burtal with so much office pressure and immense work. I have to cover the material only on weekends. Hence I aviod sleeping on weeekdays. I am a ISO-2008 certified OWL