1. Which of the following statements is most accurate?
A) A strategic asset allocation portfolio is based on short-term expectations and an investor should expected higher portfolio turnover and higher associated fees.
B) A tactical asset allocation portfolio is based on short-term expectations and an investor should expected higher portfolio turnover and higher associated fees.
C) A strategic asset allocation portfolio is based on long-term expectations and an investor should expected higher portfolio turnover and higher associated fees.
D) A tactical asset allocation portfolio is based on long-term expectations and an investor should expected higher portfolio turnover and higher associated fees.
E) A tactical asset allocation portfolio is based on long-term expectations and an investor should expected lower portfolio turnover and lower associated fees.
4) Using Excel’s Solver for mean variance optimization, to locate the minimum variance portfolio an analyst should perform the following _______.
A) minimize the cell referencing the standard deviation for the portfolio
B) minimize the cells referencing the standard deviation for each of the assets
C) maximize the cell referencing the expected return of the portfolio
D) maximize the cell referencing the Sharpe Ratio for the portfolio
E) maximize the cells referencing the Sharpe Ratio for each of the assets