21 Free CFA Mock Exam Questions and Answers on Portfolio Management

21 Free CFA Mock Exam Questions and Answers on Portfolio Management comes with all you need about this topic area. Unlike other practice tests on the market, this free CFA practice test online is not only pleasing you with easy-to-access format but also give you a great comfort through latest principles and definitions of this field. You will be lead throughout the whole content in the CFA curriculum in the easy-to-understand and friendly-user way. Free to practice and just need a computer connected to the Internet to start testing. So don’t hesitate to refresh yourself with those very amazing test questions! Good luck!
To view full questions and answers, please kindly visit our site:  http://cfaexampreparation.com/1135/21-free-cfa-mock-exam-questions-and-answers-on-portfolio-management/

Portfolio Risk: Beta = _________ of asset i's return with market return / _______ of the market return

• sharpe ratio
• covariance, variance
• geometric mean
• arithmetic mean

Portfolio Return: simply the % increase in the value of an investment over a given time period; = (end-of-period value / beg-of-period value) - 1

• arithmetic mean
• geometric mean
• efficient frontier
• holding period return

Portfolio Risk: Treynor ratio = (Expected return - risk free rate) / _______; it is measured in terms of _________ risk

• percentage
• beta, systematic
• sharpe ratio
• systematic

Portfolio Theory: Adding a risky stock to a less risky bond portfolio can _________ portfolio risk because of their ________

• decrease, correlation
• geometric mean
• beta, systematic
• sharpe ratio

Portfolio Construction: When assigning an overall risk tolerance, the prudent approach is to use the _______ of ability to take risk and willingness to take risk

• systematic
• CAL
• CML
• lower

Portfolio Risk: The line of possible portfolio risk and return combinations given the risk-free rate and the risk of return of a portfolio of risky asset is referred to as ___________

• percentage
• CAL
• CML
• lower

Portfolio Risk: (Expected return - risk free rate) / standard deviation

• sharpe ratio
• percentage
• systematic
• lower

Portfolio Management: 3 steps in portfolio management process: (1) ____________ (determine client needs and circumstances, create IPS); (2) _____________ (construct portfolio by determining suitable allocations based on IPS); (3) ____________ (monitor and rebalance as needed)

• indifference curve, upward
• holding period return
• planning, execution, feedback
• arithmetic mean

Portfolio Risk: M-squared is similar to the Sharpe Ratio but is easier to interpret b/c it is in ________ terms

• lower
• CAL
• percentage
• CML