28-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducationChapter28TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.TheCFAInstitutedividestheprocessofportfoliomanagementintothreemainelements,whichare______,______,and______.A.planning;execution;resultsB.securityselection;assetallocation;actionC.planning;assetallocation;feedbackD.planning;execution;feedbackE.risktolerance;feedback;action2.TheplanningphaseoftheCFAInstitute'sinvestmentmanagementprocessA.usesdataabouttheclientandcapitalmarket.B.usesdetailsofoptimalassetallocationandsecurityselection.C.useschangesinexpectationsandobjectives.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.3.TheexecutionphaseoftheCFAInstitute'sinvestmentmanagementprocessA.usesdataabouttheclientandcapitalmarket.B.usesdetailsofoptimalassetallocationandsecurityselection.C.useschangesinexpectationsandobjectives.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.4.ThefeedbackphaseoftheCFAInstitute'sinvestmentmanagementprocessA.usesdataabouttheclientandcapitalmarket.B.usesdetailsofoptimalassetallocationandsecurityselection.C.useschangesinexpectationsandobjectives.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.5.__________refertostrategiesaimedatattainingtheestablishedrateofreturnrequirementswhilemeetingexpressedrisktoleranceandapplicableconstraints.A.InvestmentconstraintsB.InvestmentobjectivesC.InvestmentpoliciesD.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.6.OneincorrectbeliefthatisoftencitedasareasonforfullyfundedpensionfundstoinvestinequitiesisA.stockshavehigherrisk.B.bondshavelowerreturns.C.stocksprovideahedgeagainstinflation.D.stockshavehigherreturns.E.Alloftheoptionsareincorrectbeliefsthatareoftencited.28-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation7.__________int...
