Questions from General Investment


Q: Janice Delsing, a U.S.-based portfolio manager,

Janice Delsing, a U.S.-based portfolio manager, manages an $800 million portfolio ($600 million in stocks and $200 million in bonds). In reaction to anticipated short-term market events, Delsing wishe...

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Q: Maria VanHusen, CFA, suggests that forward contracts on fixed-

Maria VanHusen, CFA, suggests that forward contracts on fixed-income securities can be used to protect the value of the Star Hospital Pension Plan’s bond portfolio against the possibility of rising in...

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Q: You and a prospective client are considering the measurement of investment performance

You and a prospective client are considering the measurement of investment performance, particularly with respect to international portfolios for the past five years. The data you discussed are presen...

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Q: In measuring the performance of a portfolio, the time-weighted

In measuring the performance of a portfolio, the time-weighted rate of return may be preferred to the dollar-weighted rate of return because: a. When the rate of return varies, the time-weighted retu...

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Q: A pension fund portfolio begins with $500,000 and earns

A pension fund portfolio begins with $500,000 and earns 15% the first year and 10% the second year. At the beginning of the second year, the sponsor contributed another $500,000. What were the time-we...

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Q: During the annual review of Acme’s pension plan, several trustees questioned

During the annual review of Acme’s pension plan, several trustees questioned their investment consultant about various aspects of performance measurement and risk assessment. a. Comment on the approp...

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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 mea...

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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...

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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 2024 for the City of Alpine’s Employee Retirement Plan, a municipal pension fund. Alpine is a...

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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 three and nine years...

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