AAMS Accredited Asset Management Specialist - Chapter 4 Questions with Correct Solutions

Brinson Study - cORRECT sOLUTION Concentrate on Asset Allocation and less on securities selection and market timing Eurodollar CD - cORRECT sOLUTION US dollar denominated Instrument that is issued by foreign banks from their US branches T-Bills - cORRECT sOLUTION Smallest std. deviation since 1926 Contingent deferred sales charge - cORRECT sOLUTION Mutual fund sales load that is assessed on a decending scale if the fund is sold within the first 5 or six years of purchase If the market rate on coupon bonds similar to Bond A increases, Bond A's duration will - cORRECT sOLUTION decrease A U.S. investor owns a bond denominated in Mexican pesos. If the bond earned 8% while the value of the peso increased against the U.S. dollar by 4%, the investor's total return was - cORRECT sOLUTION increased 10% by the falling dollar. Which one of the following rates is most directly affected by the Federal Reserve Board? - cORRECT sOLUTION Fed Funds Rate One assumption of technical analysis is that - cORRECT sOLUTION stock prices move in trends. Which one of the following is an activity ratio? - cORRECT sOLUTION Inventory turnover A correlation of 0.00 between two investment categories means that the returns of the two categories move in completely opposite directions. - cORRECT sOLUTION False