1.
Highest bond rating available
2.
Tactical asset allocation typically requires a(n) __________ management style
3.
The longer the time horizon, the more ________ the portfolio
4.
Asset __________ refers to the spreading of portfolio funds among different asset classes
5.
The extent to which an asset's actual return exceeds or falls short
6.
Capital growth is also known as capital ___________
7.
A measure of a stock's volatility in relation to the overall market
8.
This is a securities market investment theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.
9.
__________ ________ bonds are secured by a financial asset—such as stock or other bonds—that is deposited and held by a trustee for the holders of the bond.
10.
The shorter the time horizon, the more _______ the portfolio
11.
______ assets include all cash and other items expected to be converted into cash within the next 12 months
12.
Includes all cash and other items expected to be converted into cash within 12 months
13.
Steel, heavy equipment and capital goods are examples of ________ industries. These are highly sensitive to business cycles and inflation trends.
14.
This type of risk is also known as credit risk, it is the risk that a lender takes on in the chance that a borrower will be unable to make the required payments on their debt obligation
15.
Industries least affected by normal business cycles
16.
A risk management techniques that mixes a wide variety of investment within a portfolio, thus minimizing the impact of any one security on overall portfolio performance
17.
This is a measure of the amount of time a bond will take to pay for itself
18.
A securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. It stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the securi
19.
Property, plants and equipment are considered _______ assets, items that are not easily converted into cash
20.
__________ analysis is the method of analyzing companies based on factors that affect their intrinsic value and determines the underlying health and performance of a company by looking at key numbers and economic indicators.
21.
The only U.S. government agency that is backed by the full faith and credit of the U.S. government
22.
This refers to a corporation’s reputation and relationship with its clients
23.
Real estate and hedge funds are considered this type of investment
24.
Places an obligation on the firm and associated person to seek information from customers.
25.
This is the risk that government actions will constrain a corporation or industry, thereby adversely affecting an investor's holdings in that company or industry.
26.
A security or portfolio with a beta less than 1.0 is generally going to be ______ volatile than the overall market
27.
This type of investments is one in which a customer can sell quickly at face amount
28.
An analyst examines financial statements and company when performing fundamental analysis
29.
A security or portfolio with a beta greater than 1.0 is generally going to be ______ volatile than the overall market
30.
A scientific approach to measuring risk and choosing investments
31.
This is a type of bond investors in a high tax market might be interested in
32.
If an investment goes up less than beta it has a _________alpha
33.
Includes gross investment income minus operating expenses
34.
Age, marital status, and employment are all this type of customer investment consideration
35.
The _______ market is typically based on the S&P 500
36.
Strategic asset allocation is often considered a(n) __________ management style
37.
This is another name for commercial paper and is used to raise cash to finance accounts receivable and seasonal inventory changes
38.
Assessed when purchasing load bearing shares in a mutual fund
39.
An issuer who has identified specific assets for collateral for interest and principal payments will issue this type of bond
40.
This risk is the chance that a national government's treasury or central bank will default on their commercial debt
41.
A way to try to earn much higher than average returns at a higher risk
42.
When the risk of loss is more than offset by the possibility of a substantial gain
43.
This type of asset allocation strategy is a passive management style where the investor sets target allocations for various asset classes and rebalances the portfolio periodically. They investments in these portfolios are long-term.
44.
A customer's goals, financial strength and other factors are part of this
45.
This type of risk affects the overall market, not just a particular stock or industry and is both unpredictable and impossible to completely avoid
46.
Asset allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors in the short-term
47.
A U.S. government security with a maturity of one year or less
48.
A U.S. government security that mature in 2-10 years
49.
The period of time one expects to hold an investment until they need the money back and are largely dictated by investment goals and strategies.
50.
A U.S. government security with a mature of more than 10 years
51.
______ and ship is a type of delivery instructions where the securities are registered in the customer’s name and shipped to them
52.
Focuses on companies whose stocks are currently undervalued
53.
_____ capital is a company’s current assets minus its current liabilities
54.
________ appear on a company’s balance sheet in order of liquidity
55.
This is the customer objective that most investors focus on debt securities because of their interest payments
56.
This type of risk refers to the possibility that an investor will be unable to reestablish cash flows (e.g., coupon payments) at a rate comparable to their current rate of return.
57.
This risk describes the risk involved with the premature return of principal on a fixed-income security. When debtors return part of the principal early, they do not have to make interest payments on that part of the principal
58.
MPT holds that specific risks can be diversified away by having a portfolio consisting of securities whose returns are not ___________
59.
The second (in alphabetical order) major type of asset classes
60.
The third (in alphabetical order) major type of asset classes
61.
The first (in alphabetical order) major type of asset classes
62.
__________ is an asset that has a finite monetary value and usually a physical form.
