PORTFOLIO assignment 1.2. 'Transition and turning in social work', rated 6.5

PORTFOLIO assignment
1.2. 'Transition and turning
in social work', rated 6.5
which of the following institutions will on average have the greatest need for liquidity? -
ANSWER-Banks
which of the following institutional investors will most likely have the longest time
horizon - ANSWER-University Endowment
a defined benefit plan with a large number of retirees is likely to have a high need for: -
ANSWER-Income
which of the following institutional investors is most likely to manage investments in
mutual funds? - ANSWER-Investment Companies
with respect to the portfolio management process, the asset allocation is determined in
the: - ANSWER-Execution Step
the planning step of the portfolio management process is least likely to include an
assessment of the client's: - ANSWER-Securities
with respect to the portfolio management process, the rebalancing of a portfolios
composition is most likely to occur in the: - ANSWER-Feedback Step
No new shares accepted. Fund can trade at premium or discount to NAV - ANSWERClosed-end Fund
No sales charge to invest in the fund in addition to management fees - ANSWER-Noload Fund
Sales fees charged in addition to management fees (declined in popularity) - ANSWERLoan Funds
which of the following investment products is most likely to trade at their net asset value
per share? - ANSWER-Open-end Mutual Funds
Taxable: invest in high quality short-term (up to 90 days) corporate and federal govt.
debt
Emergency Fund - ANSWER-A savings account that you can access quickly to pay for
unexpected expenses or emergencies.
Speculative Investment - ANSWER-Considered a high-risk investment that might earn a
large profit in a short time.
Inflation Risk - ANSWER-A persistent economic condition that affects the prices and
returns everyone pays.
Interest Rate Risk - ANSWER-Fixed rate of return investments will go down in value as
interest rates rise
Business Failure Risk - ANSWER-Type of risk that applies to common stock, preferred
stock, and corporate bonds.
Financial Market Risk - ANSWER-Understanding that economic growth is unpredictable
and prices of stocks, bonds, mutual funds, and other investments go up or down
because of the overall state of the financial markets.
Global Investment Risk - ANSWER-Many investors are investing their money in stocks
and bonds issued by companies in other countries in an effort to diversify their
portfolios.
Value Investing - ANSWER-Buying investments where the intrinsic value of the
investment is greater than the current market price.
Growth investing - ANSWER-Buying investments where the future value of the
company is more important than the current financial performance.
Momentum investing - ANSWER-Buying investments based on price movement and not
necessarily fundamental changes in value.
Dollar Cost Averaging - ANSWER-Purchasing an equal dollar amount of the same stock
at equal intervals to benefit from the volatility of the market.
Investment Liquidity - ANSWER-The ability to buy or sell an investment quickly without
substantially reducing its value. "Priced to sell"
Equity Capital - ANSWER-Money that a business gets from its owners in order to
operate.
Common Stock - ANSWER-A unit of ownership of a company, and it entitles the owner,
or stockholder, to voting privileges. Can provide income in the form of dividends.
Preferred Stock - ANSWER-A type of stock that gives the owner the advantage of
receiving cash dividends before common stockholders receive cash dividends.
Mutual Fund - ANSWER-An investment in which investors pool their money to buy
stocks, bonds, and other securities selected by a professional manager who works for
an investment company.
Diversification - ANSWER-The process of spreading your assets among several
different types of investments to reduce overall risk.
Asset Allocation - ANSWER-The mix of different investment vehicles that a portfolio is
diversified into.
Tax-Exempt Income - ANSWER-Income that is not taxed, like the returns from most
state and municipal bonds.
Tax-deferred Income - ANSWER-Income that is taxed at a later date like most
traditional IRAs.
Ordinary Income - ANSWER-IRS designation for income that is derived from business
activity.
Capital Gain - ANSWER-The profit from the sale of an appreciated asset such as
stocks, bonds, or real estate.
Prospectus - ANSWER-A document that discloses information about a company's
earnings, assets and liabilities, its products or services, a particular stock, and the
qualifications of its management.
Closed-End Fund - ANSWER-A mutual fund with a fixed number of shares that are
issued by an investment company when the fund is first organized.
Exchange-Traded Fund - ANSWER-A fund that invest in stocks or other securities
contained in a specific stock or securities index.
Open-End Fund - ANSWER-A mutual fund with an unlimited number of shares that are
issued and redeemed by an investment company at the investors' request.
Net Asset Value - ANSWER-The amount that one share of a mutual fund is worth.
Load Fund - ANSWER-A mutual fund for which you pay a commission every time you
buy or sell shares.
No-Load Fund - ANSWER-A mutual fund that has no commission fee.
Income Dividends - ANSWER