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    (20/02) Mscfe 640 Portfolio Theory and Asset Pricing (C19-S2) Module 4: Active Frontiers Practice Quiz M4 (Ungraded)

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    FRANCIS YEGO
    The document is a quiz reviewing concepts from Module 4 of a portfolio theory and asset pricing course. It contains 5 multiple choice questions about equity factor models, the types of returns in factor models, the objective of mean-variance optimization, and the goals of passive investment managers and what standard deviation measures. The quiz is ungraded and is intended as practice for the concepts covered in the module.

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    © All Rights Reserved
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    (20/02) Mscfe 640 Portfolio Theory and Asset Pricing (C19-S2) Module 4: Active Frontiers Practice Quiz M4 (Ungraded)

    Uploaded by

    FRANCIS YEGO
    126 views4 pages
    The document is a quiz reviewing concepts from Module 4 of a portfolio theory and asset pricing course. It contains 5 multiple choice questions about equity factor models, the types of returns in factor models, the objective of mean-variance optimization, and the goals of passive investment managers and what standard deviation measures. The quiz is ungraded and is intended as practice for the concepts covered in the module.

    Original Description:

    Practice Quiz M2

    Original Title

    (Ungraded) 2

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    The document is a quiz reviewing concepts from Module 4 of a portfolio theory and asset pricing course. It contains 5 multiple choice questions about equity factor models, the types of returns in factor models, the objective of mean-variance optimization, and the goals of passive investment managers and what standard deviation measures. The quiz is ungraded and is intended as practice for the concepts covered in the module.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    126 views4 pages

    (20/02) Mscfe 640 Portfolio Theory and Asset Pricing (C19-S2) Module 4: Active Frontiers Practice Quiz M4 (Ungraded)

    Uploaded by

    FRANCIS YEGO
    The document is a quiz reviewing concepts from Module 4 of a portfolio theory and asset pricing course. It contains 5 multiple choice questions about equity factor models, the types of returns in factor models, the objective of mean-variance optimization, and the goals of passive investment managers and what standard deviation measures. The quiz is ungraded and is intended as practice for the concepts covered in the module.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    4/8/2020 Practice Quiz M4 (Ungraded)

    My courses ▶ (20/02) MScFE 640 Portfolio Theory and Asset Pricing (C19-S2)
    ▶ Module 4: Active Frontiers ▶ Practice Quiz M4 (Ungraded)

    Started on Wednesday, 8 April 2020, 4:03 PM


    State Finished
    Completed on Wednesday, 8 April 2020, 4:10 PM
    Time taken 6 mins 37 secs

    Question 1
    Complete

    Not graded

    In the equity factor model example, the portfolio:

    Select one:
    over-weighted telecommunications and over-weighted energy.
    under-weighted telecommunications and over-weighted energy.
    under-weighted telecommunications and under-weighted energy.

    over-weighted telecommunications and under-weighted energy.

    Your answer is correct.

    https://masters.wqu.org/mod/quiz/review.php?attempt=191236&cmid=38003 1/4
    4/8/2020 Practice Quiz M4 (Ungraded)

    Question 2

    Complete

    Not graded

    The return attributed to speci c stocks is called the:

    Select one:
    interaction effect.
    allocation effect.

    group effect.
    selection effect.

    Your answer is correct.

    Question 3

    Complete
    Not graded

    Classical mean-variance optimization minimizes:

    Select one:
    relative risk, as measured by squared tracking error.
    relative risk, as measured by portfolio variance.

    absolute risk, as measured by squared tracking error.


    absolute risk, as measured by portfolio variance.

    Your answer is correct.

    https://masters.wqu.org/mod/quiz/review.php?attempt=191236&cmid=38003 2/4
    4/8/2020 Practice Quiz M4 (Ungraded)

    Question 4

    Complete

    Not graded

    Passive investment managers, whose stated objective is to track an index, want


    to have:

    Select one:
    a high active return and low tracking error.
    a low active return and low tracking error.

    a low active return and high tracking error.


    a high active return and high tracking error.

    Your answer is correct.

    Question 5
    Complete

    Not graded

    Standard deviation of a portfolio measures:

    Select one:
    relative risk.
    both absolute risk and relative risk.
    neither absolute risk nor relative risk.
    absolute risk.

    Your answer is correct.

    ◄ Video Transcript Lecture 4 M4

    Jump to...

    Live Session M4 ►

    https://masters.wqu.org/mod/quiz/review.php?attempt=191236&cmid=38003 3/4
    4/8/2020 Practice Quiz M4 (Ungraded)

    https://masters.wqu.org/mod/quiz/review.php?attempt=191236&cmid=38003 4/4

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