Podcast
Questions and Answers
Which designation must portfolio managers obtain in order to be registered with the provincial securities commissions?
Which designation must portfolio managers obtain in order to be registered with the provincial securities commissions?
- Certified Management Accountant (CMA)
- Certified Public Accountant (CPA)
- Chartered Financial Analyst® (CFA)® (correct)
- Financial Risk Manager (FRM)
What educational requirement must portfolio managers satisfy in order to be granted registration?
What educational requirement must portfolio managers satisfy in order to be granted registration?
- Bachelor's degree in any field
- Completion of an approved designation like CFA (correct)
- Completion of a trade school program
- High school diploma
What work experience requirement must individuals meet to obtain the CFA Charter?
What work experience requirement must individuals meet to obtain the CFA Charter?
- Having a high school diploma
- Completing a trade school program
- Passing an intensive course of study
- Fulfilling a work experience requirement (correct)
Which section in the simplified prospectus typically describes the investment strategy of a mutual fund?
Which section in the simplified prospectus typically describes the investment strategy of a mutual fund?
What is the minimum length of time that portfolio managers must show they have performed portfolio management duties?
What is the minimum length of time that portfolio managers must show they have performed portfolio management duties?
Which regulatory document specifies the educational and experience requirements for portfolio managers?
Which regulatory document specifies the educational and experience requirements for portfolio managers?
Why is it important for investors to know whether a portfolio manager uses an active or passive strategy?
Why is it important for investors to know whether a portfolio manager uses an active or passive strategy?
What type of risk is described as occurring when investors or businesses have assets in foreign countries and require foreign currency?
What type of risk is described as occurring when investors or businesses have assets in foreign countries and require foreign currency?
How does an appreciation of the Canadian dollar relative to the U.S. dollar impact the return of investments held in the U.S.?
How does an appreciation of the Canadian dollar relative to the U.S. dollar impact the return of investments held in the U.S.?
Which measure is used to assess the changes in a security's value over a period of time?
Which measure is used to assess the changes in a security's value over a period of time?
Why do highly volatile securities pose a higher risk to mutual funds?
Why do highly volatile securities pose a higher risk to mutual funds?
What is the characteristic of investments with lower volatility levels?
What is the characteristic of investments with lower volatility levels?
Why is it important to understand the types of risks securities are exposed to?
Why is it important to understand the types of risks securities are exposed to?
What impact does currency risk have on the total return of a fund?
What impact does currency risk have on the total return of a fund?
How do investments with higher volatility levels compare to those with lower volatility levels in terms of risk?
How do investments with higher volatility levels compare to those with lower volatility levels in terms of risk?
Why should investors not evaluate investments solely based on their own characteristics?
Why should investors not evaluate investments solely based on their own characteristics?
How does diversifying a portfolio help investors?
How does diversifying a portfolio help investors?
What key benefit does Modern Portfolio Theory offer in constructing portfolios?
What key benefit does Modern Portfolio Theory offer in constructing portfolios?
Why is it advisable to combine bonds with equities in a portfolio?
Why is it advisable to combine bonds with equities in a portfolio?
What does the efficient frontier represent in Modern Portfolio Theory?
What does the efficient frontier represent in Modern Portfolio Theory?
Why are there multiple optimal portfolios according to Modern Portfolio Theory?
Why are there multiple optimal portfolios according to Modern Portfolio Theory?
How does Modern Portfolio Theory define the optimal portfolio?
How does Modern Portfolio Theory define the optimal portfolio?
What is the primary benefit of plotting portfolios on the efficient frontier?
What is the primary benefit of plotting portfolios on the efficient frontier?
Why are portfolios below the frontier considered inefficient and inferior?
Why are portfolios below the frontier considered inefficient and inferior?
What key purpose does financial analysis serve for portfolio managers?
What key purpose does financial analysis serve for portfolio managers?
Which type of financial statement is NOT commonly used by portfolio managers for analyzing securities?
Which type of financial statement is NOT commonly used by portfolio managers for analyzing securities?
What do portfolio managers use debt-equity ratios for?
What do portfolio managers use debt-equity ratios for?
Why are audited financial statements published annually by companies that offer securities to the public?
Why are audited financial statements published annually by companies that offer securities to the public?
Which type of ratio is commonly used by portfolio managers to assess how efficiently a company uses its assets to generate profit?
Which type of ratio is commonly used by portfolio managers to assess how efficiently a company uses its assets to generate profit?
What is the main purpose of the Statement of Retained Earnings for portfolio managers?
What is the main purpose of the Statement of Retained Earnings for portfolio managers?
What information can be derived from a company's Cash Flow Statement by portfolio managers?
What information can be derived from a company's Cash Flow Statement by portfolio managers?
Which mutual fund is considered higher risk due to a higher standard deviation?
Which mutual fund is considered higher risk due to a higher standard deviation?
What does Beta measure in an investment?
What does Beta measure in an investment?
If an investment's beta is less than one, what can be said about its risk level?
If an investment's beta is less than one, what can be said about its risk level?
What is the expected return for Ingram Mutual Fund if the benchmark returns 5%?
What is the expected return for Ingram Mutual Fund if the benchmark returns 5%?
Which investment has a volatility level similar to the market?
Which investment has a volatility level similar to the market?
