Investment Fund Concepts Quiz

Investment pool that gathers money from many investors to purchase a diversified portfolio.

Reflects the per-share value of the fund and is calculated by subtracting liabilities from assets.

Percentage of a fund's assets used for administrative, management, advertising expenses, etc.

Sales charge paid when purchasing or selling shares in some mutual funds.

Privately pooled investment vehicle, often pursuing complex strategies.

Spreading investments across different assets to mitigate risk.

Adjusting portfolio holdings to maintain desired risk-return profile.

Emphasizes diversification to optimize risk-return tradeoff.

Automatically adjusts asset allocation over time, becoming more conservative as target date approaches.

Indicates the extent of variation from the mean of a data set.

Indicates the degree to which two variables move in relation to each other.

Shows how much two random variables change together.

Involves frequent trading and attempts to beat benchmark returns.

Aims to replicate the performance of a specific index or benchmark.

Focuses on systematic factors such as value, size, or momentum.

Uses alternative index-weighting schemes to capture factors' premiums.

Indicates the fund's outperformance or underperformance compared to its benchmark.

Measures the fund's sensitivity to market movements relative to a benchmark.

Assesses the return of an investment compared to its risk.

Similar to Sharpe ratio but focuses on downside risk.

Estimates the annual return expected on a bond if held until maturity.

Asserts that it's impossible to consistently outperform the market due to efficiency.

Analyzes returns based on underlying factors such as market risk or company size.

Pricing model that attempts to explain asset prices based on arbitrage opportunities.

Considers several factors simultaneously to predict portfolio returns.