11. CME 2

Question 1

CME: 2

Forecasting Asset Class Returns

8 LOS

Econ 10%, 8%, 8%

Answer 1

Question 2

a. discuss approaches to setting expectations for fixed-income returns;

Question 3

b. discuss risks faced by investors in emerging market fixed-income securities and the country risk analysis techniques used to evaluate emerging market economies;

Question 4

c. discuss approaches to setting expectations for equity investment market returns;

Question 5

d. discuss risks faced by investors in emerging market equity securities;

Question 6

e. explain how economic and competitive factors can affect expectations for real estate investment markets and sector returns;

Question 7

f. discuss major approaches to forecasting exchange rates;

Question 8

g. discuss methods of forecasting volatility;

Question 9

h. recommend and justify changes in the component weights of a global investment portfolio based on trends and expected changes in macroeconomic factors.