- One method professional managers use to manage pension funds, endowment funds, foundations, and other large portfolios that have a long-term focus with required payout is the:

A. Markowitz method. B. core-satellite portfolio approach. C. market line method. D. capital market line method. 6

- What is a major reason that entities invest in private equity funds? A. Higher expected returns than can be earned from the stock market B. The joy of seeing new companies start up C. The safety of the investment D. None of the above

- Real assets may be effective for portfolio diversification because:

A. they provide an effective hedge against deflation. B. they are perceived as a safe haven for investments. C. real and financial assets are less positively correlated than financial assets alone. D. None of the above

- Duration is used primarily as a measure of:

A. The relationship between coupon rate and bond rating B. Price sensitivity to interest rate changes C. The difference between YTM and YTC

-If you were CFO of a cash rich industrial company, which one of the following would be a good reason to repurchase your companys stock?

A. You believe the stock is too expensive B. You want to improve liquidity in the market C. You want to reduce shares outstanding to improve per share results

- Which one of these is the most appropriate method to use in determining investment performance?

A. Arithmetic returns B. Geometric returns C. Median returns D. Yield-based returns 7

-Hedge funds: A. are open about their trading strategies. B. are secretive about their strategies. C. trade using only one brokerage. D. None of the above

-Seed capital is usually supplied by investors called: A. hard-core investors. B. angel investors. C. hedge fund investors. D. None of the above

- What is market capitalization?

A. The total owners' equity in a firm B. The total marketable assets of a firm C. Shares outstanding multiplied by the market value of the stock D. None of the above

-Under the CAPM, if the equity risk premium increases, the required return on equity will:

A. increase by beta times the equity risk premium B. decrease by beta times the equity risk premium C. increase by beta minus the equity risk premium B. decrease by beta minus the equity risk premium

I worked on these earlier but I'm not confident with my answers! Please answer what you can and provide a bit of reasoning behind your answer. Thank you :)