Free CWM_LEVEL_2 Exam Braindumps (page: 5)

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The Markowitz model identifies the efficient set of portfolios, which offers the

  1. Highest return for any given level of risk or the lowest risk for any given level of return
  2. Least-risk portfolio for a conservative, middle-aged investor
  3. Long-run approach to wealth accumulation for a young investor
  4. Risk-free alternative for risk-averse investors

Answer(s): C



What is a method to evaluate a large volume of consumer loans quickly with minimum labour?

  1. Debt Scoring
  2. Credit Scoring
  3. Credit Process
  4. Debt Consolidation

Answer(s): B



The core of the ____________ is that even though stocks appear to be an attractive asset, they have high average returns and a low covariance with consumption growth investors appear very unwilling to hold them.

  1. Sunk Cost Fallacy
  2. Equity Premium Puzzle
  3. Present-biased Preferences
  4. Inter Temporal Consumption

Answer(s): B



For a single income family priority is on

  1. Protecting income via a term plan
  2. Investing in commodities to grow wealth
  3. Investing in mutual funds to grow wealth
  4. All of the above

Answer(s): D






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