Questions from General Investment

Q: Trustees of the Pallor Corp. pension plan ask consultant Donald Millip

Trustees of the Pallor Corp. pension plan ask consultant Donald Millip to comment on the following statements. What should his response be? a. Median manager benchmarks are statistically unbiased meas...

Q: James Chan is reviewing the performance of the global equity managers of

James Chan is reviewing the performance of the global equity managers of the Jarvis University endowment fund. Williamson Capital is currently the endowment fund’s only large-capital...

Q: Carl Karl, a portfolio manager for the Alpine Trust Company,

Carl Karl, a portfolio manager for the Alpine Trust Company, has been responsible since 2023 for the City of Alpine’s Employee Retirement Plan, a municipal pension fund. Alpine is a...

Q: The Retired Fund is an open-ended mutual fund composed of

The Retired Fund is an open-ended mutual fund composed of $500 million in U.S. bonds and U.S. Treasury bills. This fund has had a portfolio duration (including T-bills) of between 3 and 9 years. Retir...

Q: An analyst wants to evaluate portfolio X, consisting entirely of U

An analyst wants to evaluate portfolio X, consisting entirely of U.S. common stocks, using both the Treynor and Sharpe measures of portfolio performance. The following table provides the average annua...

Q: John Irish, CFA, is an independent investment adviser who is

John Irish, CFA, is an independent investment adviser who is assisting Alfred Darwin, the head of the Investment Committee of General Technology Corporation, to establish a new pension fund. Darwin as...

Q: You are a U.S. investor considering purchase of one

You are a U.S. investor considering purchase of one of the following securities. Assume that the currency risk of the Canadian government bond will be hedged, and the 6-month discount on Canadian doll...

Q: A global manager plans to invest $1 million in U.

A global manager plans to invest $1 million in U.S. government cash equivalents for the next 90 days. However, she is also authorized to use non–U.S. government cash equivalents, as...

Q: The Windsor Foundation, a U.S.-based, not

The Windsor Foundation, a U.S.-based, not-for-profit charitable organization, has a diversified investment portfolio of $100 million. Windsor’s board of directors is considering an initial investment...

Q: a. Pamela Itsuji, a currency trader for a Japanese bank

a. Pamela Itsuji, a currency trader for a Japanese bank, is evaluating the price of a 6-month Japanese yen/U.S. dollar currency futures contract. She gathers the following currency and interest rate d...