Portfolio Management: Fintech in Investment Management

Question 1

Alternative data

Answer 1

Non-traditional data types generated by the use of electronic devices, social media, satellite and sensor networks, and company exhaust.

Question 2

Artificial intelligence

Answer 2

Computer systems that exhibit cognitive and decision-making ability comparable (or superior) to that of humans.

Question 3

Big Data

Answer 3

The vast amount of data being generated by industry, governments, individuals, and electronic devices that arises from both traditional and non-traditional data sources.

Question 4

Bitcoin

Answer 4

A cryptocurrency using blockchain technology that was created in 2009.

Question 5

Blockchain

Answer 5

A type of digital ledger in which information is recorded sequentially and then linked together and secured using cryptographic methods.

Question 6

Cryptocurrency

Answer 6

An electronic medium of exchange that lacks physical form.

Question 7

Cryptography

Answer 7

An algorithmic process to encrypt data, making the data unusable if received by unauthorized parties

Question 8

Data science

Answer 8

An interdisciplinary field that brings computer science, statistics, and other disciplines together to analyze and produce insights from Big Data.

Question 9

Deep learning

Answer 9

Machine learning using neural networks with many hidden layers.

Question 10

Deep learning nets

Answer 10

Machine learning using neural networks with many hidden layers.

Question 11

Distributed ledger

Answer 11

A type of database that may be shared among entities in a network.

Question 12

Distributed ledger technology

Answer 12

Technology based on a distributed ledger.

Question 13

Fintech

Answer 13

Technological innovation in the design and delivery of financial services and products in the financial industry.

Question 14

High-frequency trading

Answer 14

A form of algorithmic trading that makes use of vast quantities of data to execute trades on ultra-high-speed networks in fractions of a second.

Question 15

Initial coin offering

Answer 15

An unregulated process whereby companies raise capital by selling crypto tokens to investors in exchange for fiat money or another agreed-upon cryptocurrency.

Question 16

Internet of Things

Answer 16

A network arrangement of structures and devices whereby the objects on the network are able to interact and share information.

Question 17

Machine learning

Answer 17

Computer based techniques that seek to extract knowledge from large amounts of data by “learning” from known examples and then generating structure or predictions. ML algorithms aim to “find the pattern, apply the pattern.”

Question 18

Natural language processing

Answer 18

Computer programs developed to analyze and interpret human language.

Question 19

Neural networks

Answer 19

Computer programs based on how our own brains learn and process information.

Question 20

Overfitting

Answer 20

An undesirable result from fitting a model so closely to a dataset that it does not perform well on new data.

Question 21

Permissioned networks

Answer 21

Networks that are fully open only to select participants on a DLT network.

Question 22

Permissionless networks

Answer 22

Networks that are fully open to any user on a DLT network.

Question 23

Robo-adviser

Answer 23

A machine-based analytical tool or service that provides technology-driven investment solutions through online platforms.

Question 24

Smart contract

Answer 24

A computer program that is designed to self-execute on the basis of pre-specified terms and conditions agreed to by parties to a contract.

Question 25

Supervised learning

Answer 25

A machine learning approach that makes use of labeled training data.

Question 26

Text analytics

Answer 26

The use of computer programs to analyze and derive meaning from typically large, unstructured text- or voice-based datasets.

Question 27

Tokenization

Answer 27

The process of representing ownership rights to physical assets on a blockchain or distributed ledger.

Question 28

Unsupervised learning

Answer 28

A machine learning approach that does not make use of labeled training data.