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Question 1

What correlates with the least volatility when analyzing portfolio performances?

Answer 1

Lowest standard-deviation

Question 2

What is arithmetic mean?

Answer 2

The sum of all the numbers in the series divided by the count of all numbers in the series.

Question 3

What does negative correlation add to your portfolio?

Answer 3

Diversification

Question 4

What is the efficient market hypothesis?

Answer 4

implies that there is little hope of beating the market, although you can match market returns through passive index investing.

Question 5

What is semi-strong form efficiency?

Answer 5

An aspect of the Efficient Market Hypothesis (EMH) that assumes that current stock prices adjust rapidly to the release of all new public information.

Question 6

What is strong-form efficiency?

Answer 6

share prices fully and fairly reflect not only all publicly available information and all past information, but also all private information (insider information) as well. In such a market, it is not possible to make abnormal gains by studying any kind of information.

Question 7

What is weak form efficiency?

Answer 7

Future prices cannot be predicted by analyzing prices from the past

Question 8

What is an efficient frontier

Answer 8

Investment portfolios that offer the highest expected return for a specific level of risk.

Question 9

What triggers filing of an 8k

Answer 9

Bankruptcy filing. Receivership. Personnel change or ouster of a major executive (such as a CEO)

Question 10

Required sales volume to be federally registered?

Answer 10

May register at 100M must register at 110M

Question 11

What is front running?

Answer 11

Dealing on advance information provided by their brokers and investment analysts, before their clients have been given the information.

Question 12

what is always needed to determine future cash flow?

Answer 12

Number of payments

Question 13

What states does a broker dealer have to register in?

Answer 13

Any state they do business in (where the client resides)

Question 14

Tangible assets, precious metals, etc. addresses

Answer 14

Inflation risk

Question 15

Trustees exempt vs non exempt transactions

Answer 15

Bankruptcy- exempt; fiduciary
Family trust- non exempt-not fiduciary

Question 16

time weighted return

Answer 16

multiplies the returns for each holding-period to show how the returns are compounded over time. The time-weighted return (TWR) helps eliminate the distorting effects on growth rates created by inflows and outflows of money.