The Voir Dire Process

question 17

Multiple Choice

The voir dire process

• A) is supposed to ensure that jurors are not biased.
• B) allows for removal of potential jurors through both peremptory and for cause challenges.
• C) both a and b.
• D) none of the above.

Understand the principles and assumptions behind the Treynor-Black model in portfolio management.

Calculate the standard deviation of returns on an active portfolio given its beta, the standard deviation of the market index, and its nonsystematic variance.

Describe the optimal weighting of securities within an active portfolio according to the Treynor-Black model.

Differentiate between a purely passive investment strategy and one that combines passive and active elements.

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Definitions:

Cost

The cost involved in buying an item or the financial outlay needed to produce a good or service.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Markdown

A reduction from the original or listed price of a good or service, often used to stimulate sales or clear out inventory.

Gross Profit

The financial term for the difference between revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.