Which of the following statements is least likely an advantage of investing in hedge funds through a fund of funds? Funds of funds provide:
An increase in expected return through diversification.
B. Expertise in selecting funds and conducting due diligence.
C. Access to successful funds that may otherwise be closed to new investors.
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Regarding a companys production function, both labor costs and capital costs are best described as:
A. Fixed in the long run.
B. Variable in the long run
C. Variable in the short run
Preeta Singh, a CFA Candidate, is an asset manager employed by a fund management company managing very large segregated pension funds. In her spare time outside of working hours, Singh likes to provid
A. No.
B. Yes,with regard to loyalty.
C. Yes,with regard to additional compensation arrangements.
Assuming no short selling, diversification benefit is most likely to occur when the correlations among the securities contained in the portfolio are:
A. Equal to positive one
B. Less than positive one
C. Greater than positive one
In a sales-driven pro forma analysis, retained earnings is most accurately forecasted as:
A percentage of forecasted sales.
B. Previous retained earnings plus forecasted financing surplus or deficiency.
C. Previous retained earnings plus forecasted net income less forecasted dividends.