1. True – False. Bottom-up investment approaches are duration management, yield curve positioning and sector selection. 2. Would...

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Finance

1. True – False. Bottom-up investment approaches areduration management, yield curve positioning and sectorselection.
2. Would an asset backed security typically pay more or lessinterest than a comparable non-asset backed security? (thinkrisk)
3. Please briefly describe a credit default swap:
4.Why is predicting prepayments important for mortgage backedsecurities? When would we typically see higher prepayments
5. A money market fund has hit the value of $0.99 cents. Ithas
a)Broken the buck
b)It will not implement shadow pricing
c)It will continue to trade as normal
6. Please compare and contrast fundamental vs quantitativeresearch:
7.True/False. Technical analysis seeks to predict stockperformance by examining price trends.
8. Briefly describe what a spread is on a trade order? What doesit say about liquidity?
9.Please briefly describe Market Impact in relation to largetrades:
10. What is a basket trade? (think mutual funds)
11. When we say a broker is working a trade what doesthat mean and what is the goal?
12. True/False. Hedge funds and other large moneymanagers do not like to use dark pools because it exposes theirstrategy to the market.
13. How would you contrast a value vs growth stock?
14. True/False Bottom-up investment approaches areissue selection and predicting calls or prepayments
15. In an environment of rising interest rates a zero couponbond with a 5 year maturity would have:
a)A duration less than 5 years
b)A duration equal to 5 years
c)A duration greater than 5 years

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4.1 Ratings (668 Votes)

As per rules I am answering the first 4 sub parts of this question 1 False In bottom up approach the investor focuses on the company rather than the economy or sector as a whole 2 No An asset backed security See Answer

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1. True – False. Bottom-up investment approaches areduration management, yield curve positioning and sectorselection.2. Would an asset backed security typically pay more or lessinterest than a comparable non-asset backed security? (thinkrisk)3. Please briefly describe a credit default swap:4.Why is predicting prepayments important for mortgage backedsecurities? When would we typically see higher prepayments5. A money market fund has hit the value of $0.99 cents. Ithasa)Broken the buckb)It will not implement shadow pricingc)It will continue to trade as normal6. Please compare and contrast fundamental vs quantitativeresearch:7.True/False. Technical analysis seeks to predict stockperformance by examining price trends.8. Briefly describe what a spread is on a trade order? What doesit say about liquidity?9.Please briefly describe Market Impact in relation to largetrades:10. What is a basket trade? (think mutual funds)11. When we say a broker is working a trade what doesthat mean and what is the goal?12. True/False. Hedge funds and other large moneymanagers do not like to use dark pools because it exposes theirstrategy to the market.13. How would you contrast a value vs growth stock?14. True/False Bottom-up investment approaches areissue selection and predicting calls or prepayments15. In an environment of rising interest rates a zero couponbond with a 5 year maturity would have:a)A duration less than 5 yearsb)A duration equal to 5 yearsc)A duration greater than 5 years