The Planning Phase of the CFA Institute's Investment Management Process

question 82

Multiple Choice

The planning phase of the CFA Institute's investment management process

• A)uses data about the client and capital market
• B)uses details of optimal asset allocation and security selection
• C)uses changes in expectations and objectives
• D)A, B, and C
• E)none of the above

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Definitions:

Comparative Advantage

The economic principle that a country or entity should produce goods and services for which it has a lower opportunity cost than its trading partners.

Mutual Gain

A situation or outcome in negotiation or trade where all parties involved benefit or achieve some level of advantage.

Tariffs

Tariffs are taxes imposed by a government on imported or exported goods.

Quotas

Government-imposed trade restrictions that limit the quantity or monetary value of goods that can be imported or exported during a specified time.