Question 2 a) A passive Equities management Strategy is sometimes also referred to as a buy...

 

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Question 2 a) A passive Equities management Strategy is sometimes also referred to as a buy and hold strategy. List two passive investment strategies. (2 marks) b) c) Of one of the strategies outlined in question (a) list one advantage and one disadvantage. (2 marks) An Investment Strategy that sees the investment manager buying stocks when other managers are selling can be classified as what type of Active Equities strategy? (2 marks) d) e) A portfolio manager indicates that his company uses a Fundamental Equities strategy that focuses on sectors and does not necessarily focus on buying individual stocks. a. Identify whether the company is using a Bottom up or Top Down strategy. (1 marks) b. Which of the two strategies (Top Down or Bottom up) would an analyst that picks undervalued stocks to purchase be most valuable use? (1 marks) You have been asked to explain the difference between Value and Growth equity investment style. Show this difference by listing the areas of focus for the : f) a. Value-oriented Investor b. Growth-oriented investor (2 marks) (2 marks) You were presented with the below Style Analysis grid and asked to put each of the stocks (presented in table 1) in the appropriate box given the details for each. Large Cap Value Small- Value Table 1 Price to Earnings ratio (P/E) Large-Cap Growth Small Growth Stock A Stock B Entire Market 5 20 15 Market Capitalization J$123 Billion J$2 Billion J$200 Billion (3 marks) Question 2 a) A passive Equities management Strategy is sometimes also referred to as a buy and hold strategy. List two passive investment strategies. (2 marks) b) c) Of one of the strategies outlined in question (a) list one advantage and one disadvantage. (2 marks) An Investment Strategy that sees the investment manager buying stocks when other managers are selling can be classified as what type of Active Equities strategy? (2 marks) d) e) A portfolio manager indicates that his company uses a Fundamental Equities strategy that focuses on sectors and does not necessarily focus on buying individual stocks. a. Identify whether the company is using a Bottom up or Top Down strategy. (1 marks) b. Which of the two strategies (Top Down or Bottom up) would an analyst that picks undervalued stocks to purchase be most valuable use? (1 marks) You have been asked to explain the difference between Value and Growth equity investment style. Show this difference by listing the areas of focus for the : f) a. Value-oriented Investor b. Growth-oriented investor (2 marks) (2 marks) You were presented with the below Style Analysis grid and asked to put each of the stocks (presented in table 1) in the appropriate box given the details for each. Large Cap Value Small- Value Table 1 Price to Earnings ratio (P/E) Large-Cap Growth Small Growth Stock A Stock B Entire Market 5 20 15 Market Capitalization J$123 Billion J$2 Billion J$200 Billion (3 marks)

Answer rating: 100% (QA)

Answer a Two passive investment strategies are 1 Index fund investing 2 Dividend reinvestment plans ... View the full answer