Podcast
Questions and Answers
According to the text, what is the historical average return on equities in Australia?
According to the text, what is the historical average return on equities in Australia?
- 10-11.5% (correct)
- 15-16%
- 2-3%
- 4-6%
According to the text, what is the historical equity premium?
According to the text, what is the historical equity premium?
- 2-3%
- 4-6% (correct)
- 12-14%
- 8-10%
According to the text, what is the main factor contributing to portfolio return?
According to the text, what is the main factor contributing to portfolio return?
- Asset allocation (correct)
- Security selection
- Diversification principles
- Risk tolerance
According to the text, what is the main purpose of asset allocation in portfolio construction?
According to the text, what is the main purpose of asset allocation in portfolio construction?
According to the text, what is the second step in constructing a diversified investment portfolio?
According to the text, what is the second step in constructing a diversified investment portfolio?
According to the text, what is the main difference between active and passive management styles?
According to the text, what is the main difference between active and passive management styles?
According to the text, what is the main reason for the little value added in the selection of specific assets within asset classes?
According to the text, what is the main reason for the little value added in the selection of specific assets within asset classes?
According to the text, what is the main factor determining the two-step process of constructing a diversified investment portfolio?
According to the text, what is the main factor determining the two-step process of constructing a diversified investment portfolio?
According to the text, what is the main purpose of investment strategies?
According to the text, what is the main purpose of investment strategies?
According to the text, what is the historical evidence regarding 'real' rates of return over time?
According to the text, what is the historical evidence regarding 'real' rates of return over time?
Which type of investment has typically provided stable and higher long-term returns compared to other assets?
Which type of investment has typically provided stable and higher long-term returns compared to other assets?
What can happen to short-term investments in equities?
What can happen to short-term investments in equities?
During the 2008 Global Financial Crisis, what happened to the S&P/ASX200 Index?
During the 2008 Global Financial Crisis, what happened to the S&P/ASX200 Index?
Where can you buy and sell listed shares in Australia?
Where can you buy and sell listed shares in Australia?
What is the 'paradox' of the Efficient Markets Hypothesis (EMH)?
What is the 'paradox' of the Efficient Markets Hypothesis (EMH)?
What is technical analysis, or charting, based on?
What is technical analysis, or charting, based on?
What do technical analysts evaluate in financial time series?
What do technical analysts evaluate in financial time series?
Where can you find real-time share prices for ASX-listed companies?
Where can you find real-time share prices for ASX-listed companies?
What forms of documentation relate to a shareholding?
What forms of documentation relate to a shareholding?
Which type of transaction is usually the cheapest?
Which type of transaction is usually the cheapest?
What is the main difference between strategic asset allocation (SAA) and tactical asset allocation (TAA)?
What is the main difference between strategic asset allocation (SAA) and tactical asset allocation (TAA)?
What is the main objective of strategic asset allocation (SAA)?
What is the main objective of strategic asset allocation (SAA)?
Which of the following is true about tactical asset allocation (TAA)?
Which of the following is true about tactical asset allocation (TAA)?
Which of the following best describes strategic asset allocation (SAA)?
Which of the following best describes strategic asset allocation (SAA)?
What is dynamic asset allocation (DAA) primarily associated with?
What is dynamic asset allocation (DAA) primarily associated with?
What is the purpose of market timing in tactical asset allocation (TAA)?
What is the purpose of market timing in tactical asset allocation (TAA)?
What is the reason for an equity risk premium?
What is the reason for an equity risk premium?
Which of the following methods is NOT a principal method of equity capital raising?
Which of the following methods is NOT a principal method of equity capital raising?
What is the main difference between direct and indirect investment in equity?
What is the main difference between direct and indirect investment in equity?
What determines the allocation of funds to different asset management teams?
What determines the allocation of funds to different asset management teams?