10 CFA Level 3 Mock Exam 2015 Free Questions on Portfolio Management

10 CFA Level 3 Mock Exam 2015 Free Questions on Portfolio Management include the basic concepts and examples will make your knowledge more extensive. This fast-respondus free CFA mock exam online provides educational testing questions to fresh candidates in order to assist in holding true to the Portfolio Management topic area. You will experience those questions in the user-friendly and easy-to-access format so that it’s very easy to grasp all the basic knowledge before the exam. Hurry to test right now to get high scores and get a CFA designation!
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1. identify prominent aspects of the manager's investment process2. select securities consistent with that investment process3. devise a weighting scheme for the benchmark securities (including a cash position)4. review the preliminary benchmark and make modifications5. review the preliminary benchmark and make modifications6. Rebalance the benchmark portfolio on a predetermined schedule

• what are steps involved in creating a custom security-based benchmark?
• what are the 3 inputs used in macro attribution?
• 3 desirable benchmark qualities that median manager/fund benchmarks lack
• 7 properties that a valid benchmark must possess

1. net contributions2. the risk-free asset3. asset categories4. investment style5. investment managers6. allocation effects

• what are steps involved in creating a custom security-based benchmark?
• what are the 3 inputs used in macro attribution?
• 7 properties that a valid benchmark must possess
• what are the decision-making levels used when evaluating a fund sponsor's decision making process?

firing/don't hire managers that do/would add value

• type 2 error
• 7 benchmark types
• what are the 3 inputs used in macro attribution?
• type 1 error

MWR will produce the higher return (and will also produce a lower return if large amount of money withdrawn prior to a period of strong performance)describe the LIRR the linked IRR is an approximation of the TWR for a give period, which is calculated by chain linking MWR calculationsthe MWR is sensitive to the ____ and ____ of cash flows size, timingwhat does MWR measure? money-weighted return measures the the growth rate applied to an "average" amount of dollars invested over the evaluation perioddescribe

• if external funds are added to an account prior to a period of strong performance, which calculation (MWR or TWR) will give a higher rate of return?
• what are steps involved in creating a custom security-based benchmark?
• what are the 3 inputs used in macro attribution?
• 3 desirable benchmark qualities that median manager/fund benchmarks lack

1. policy allocations to asset categories within the fund and to individual managers within asset categories2. benchmark portfolio returns3. account returns, valuations, external cash flows

• type 2 error
• 7 properties that a valid benchmark must possess
• type 1 error
• what are the 3 inputs used in macro attribution?

1. not specified in advanced2. not investable3. cannot serve as a passive investment

• 3 desirable benchmark qualities that median manager/fund benchmarks lack
• what are the 3 inputs used in macro attribution?
• good benchmarks should generally display what characteristics?
• 7 properties that a valid benchmark must possess

keeping/hiring managers that don't add value

• type 1 error
• 7 benchmark types
• what are the 3 inputs used in macro attribution?
• type 2 error

1. minimal systematic bias between account and benchmark2. less tracking error of the account relative to the benchmark when compared to alternative benchmarks3. strong correspondence between the manager's universe of potential securities and the benchmark4. low turniver

• good benchmarks should generally display what characteristics?
• 7 benchmark types
• what are the 3 inputs used in macro attribution?
• 7 properties that a valid benchmark must possess