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- Describe an investment portfolio and how youd go about developing, monitoring, and managing a portfolio of securities.1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues) B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process. C.All the options listed. D.Provide regular updates to any important changes to the securities(prices, risks.etc) 2. In accordance with CFA standard VI(A), a member must: A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income. B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300. C.Disclose all actual and perceived conflicts of interest before assisting the client or employer. D.Use their professional judgement and only disclose actual conflicts of interest.5- Identify the market where already issued securities such as equity shares are traded a. Commodity Market b. Fund market c. Secondary Market d. Primary Market
- 3. Which of the following categories of investments are reported at their fair values on the balance sheet and have unrealized holding gains and losses included as a separate component of stockholders' equity? a. held-to-maturity debt securitiesb. marketable securitiesc. available-for-sale securitiesd. trading securitiesa) What are the basic ways for the analysis of investment in equity securities in stock market? b) How does CSE select 30 companies for CSE-30 stock index? c) “Fundamental Analysis provides an analytical framework for rational investment decision making.” Explain.Trading securities, by definition, are properly classified in the statement of financial position as: Select one: O a. Shareholders' equity O b. Other assets O c. Intangibles O d. Current assets
- Q3. Elaborate the following statements: A. Portfolio return is a linear combination of individual securities whereas portfolio risk is nonlinear.B. Portfolio Management is primarily a risk diversification tool.C. Financial Contracts are those which give simultaneous rise to the financial assets of one entity and financial liability or equity of another entity.D. Investment decision refers to the selection and acquiring the resources whereas financing decision refers to the arrangement of funds to acquire selected resources.In discussing how to value and report investment securities, your text also talks about trading securities, available-for-sale securities, and held-to-maturity securities. Briefly describe these securities and state how they are each valued and reported? Also be brief and to the point.QUESTION Briefly differentiate between money market and capital market in relation to: i. risk levels ii. timeline for maturity iii. aim of raising money iv. funds supplier v. financial instruments vi. terms of the securities traded vii. investment objective viii. examples (just mention them)
- 1) Financial markets may be categorized as? A). debt securities markets B). Equity securities markets C). Derivative securities markets D). Foreign exchange markets. Required : Please answer this question by choosing the correct option.Based upon risk, which of the following financial assets is likely to have the highest required rate of return? Select one: A. A corporate bond B. A U.S. Treasury bill C. A bank certificate of deposit D. A share of common stockwhich of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stock
