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Quiz M4

This document is a practice quiz from an online course on portfolio theory and asset pricing. It contains 5 multiple choice questions about concepts covered in Module 4, such as the basis for selecting securities for a portfolio, the output of mean-variance optimization, definitions of active return and tracking error, and the difference between active and passive fund managers. The quiz is ungraded and allows the student to practice and review the material.

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FRANCIS YEGO
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219 views4 pages

Quiz M4

This document is a practice quiz from an online course on portfolio theory and asset pricing. It contains 5 multiple choice questions about concepts covered in Module 4, such as the basis for selecting securities for a portfolio, the output of mean-variance optimization, definitions of active return and tracking error, and the difference between active and passive fund managers. The quiz is ungraded and allows the student to practice and review the material.

Uploaded by

FRANCIS YEGO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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4/8/2020 Practice Quiz M4 (Ungraded)

My courses ▶ (20/02) MScFE 640 Portfolio Theory and Asset Pricing (C19-S2)
▶ Module 4: Active Frontiers ▶ Practice Quiz M4 (Ungraded)

Started on Wednesday, 8 April 2020, 4:11 PM


State Finished
Completed on Wednesday, 8 April 2020, 4:26 PM
Time taken 15 mins 17 secs

Question 1
Complete

Not graded

In the case study, what was the basis for selecting a security to be in the
portfolio?

Select one:
It had a favorable score for the value factor, based on data only in January.
It had one of the highest cap sizes, based on January’s data.
It had one of the highest cap sizes, based on data for the whole year.
It had a favorable score for the value factor, based on data for the whole
year.

Your answer is correct.

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4/8/2020 Practice Quiz M4 (Ungraded)

Question 2

Complete

Not graded

The output of mean-variance optimization is a:

Select one:
1-dimensional point of minimum variance.
2-dimensional straight line.

2-dimensional curve.
3-dimensional surface.

Your answer is correct.

Question 3

Complete
Not graded

Which can be a negative value?

Select one:
Both active return and tracking error
Active return

Tracking error
Neither active return nor tracking error

Your answer is correct.

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4/8/2020 Practice Quiz M4 (Ungraded)

Question 4

Complete

Not graded

A low tracking error indicates:

Select one:
a stable active return.
low absolute risk.

no kurtosis.
perfect correlation.

Your answer is correct.

Question 5

Complete
Not graded

The difference between active fund managers and passive fund managers is
that:

Select one:
only passive fund managers try to outperform a benchmark.
both try to match a benchmark.
both try to outperform a benchmark.
only active fund managers try to outperform a benchmark.

Your answer is correct.

◄ Video Transcript Lecture 4 M4

Jump to...

Live Session M4 ►

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4/8/2020 Practice Quiz M4 (Ungraded)

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