Lecture 11 - Asset Allocation & CFA Policy Flashcards
1
Q
Asset Allocation
A
Deciding what asset classes and what percentages for a portfolio
2
Q
CFA Investment Management Process
A
1) Planning
2) Execution
3) Feedback
3
Q
Planning Components
A
A) Identifying objectives and constraints
B) Creating the Investment Policy Statement
C) Forming capital market expectations
D) Creating the strategic asset allocation
4
Q
Execution Components
A
A) Asset allocation (tactical and portfolio optimization)
B) Security selection
C) Implementation and execution
5
Q
Feedback Components
A
A) Monitoring
B) Rebalancing
C) Performance evaluation
6
Q
CFA Investor Categories
A
1) Aggressive
2) Moderate
3) Conservative
