1) Daniel Smith has a total portfolio value of $2 million. He invests an additional $50,000 just before an uptick in the market and $100,000 just after a market decline. Which of the following methods of performance measurement will NOT reflect Daniel's market timing decisions?
a) Time-weighted performance measurement
b) Money-weighted performance measurement
2) A Reg T call occurs when the Reg T requirement on a particular transaction exceeds the:
a) Debit balance
d) Reg T excess
3) What time horizon and confidence level is required to estimate the regulatory capital charge according to the Basel II Accord?
a) One-year 99.9 percent VaR
b) Ten-day 99.9 percent VaR
c) One-year 99 percent VaR
d) Ten-day 99 percent VaR
4) The PPI is used first and foremost to measure:
b) Food and energy
d) A basket of goods
5) Meredith Gross purchased 100 shares of ABC mutual fund. After six months, Ms. Gross decides to redeem her shares. The redemption is subject to the deferred sales charge on redemption. Which of the following fees or loads will Ms. Gross pay upon redemption of her shares?
a) Maintenance fee
b) Back-end load
c) Exchange fee
d) Front-end load
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- Introduction to Performance Measurement
- Basic Margin
- Operational Risk: Quantification and Mitigation
- Fundamentals of Economic Indicators
- Fundamentals of Mutual Funds
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Answers: 1-a, 2-c, 3-a, 4-c, 5-b