Equity
A term that refers to a share of ownership in a company traded on the market
What is fixed income?
Debt Instrument
What is the key benefit to diversification?
Reducing Risk
What is our most and least aggressive model?
Alpha Opportunity + Vega
I am 25 years old, have excess funds and want to begin investing. What risk tolerance should I be?
Aggressive
What does "ETF" stand for?
Exchange Traded Fund
What are 3 types of fixed income?
Corporate Bonds, Muni's, High Yield
Does diversification eliminate all risk?
No, it can it can minimize it but not eliminate
This event occurs when a company increases the number of shares, reducing the price per share
stock split
The statistical, measurement that indicates how much assets return s move with the market. With 1.0 indicating market level risk
What is Beta
What company has the largest market cap?
MSFT
The city of Columbus want to build a new park, they would offer what type of bond?
Muni bond
What asset class typically has an inverse correlation to the equity market?
Fixed Income
Is it easier for a fund manager to outperform in the large cap area or Small Cap
Small Cap
Is Alpha Horizon an actively or passively managed model
Actively
What should you be overweight if headed into a recession?
Staples, Utilities, Healthcare, Bonds
At what point in your life would you potentially want to increase fixed income exposure?
Retirement
What is the type of risk that can be minimized by diversification?
Unsystematic
How many FA's does the investment team support or how much AUM do we manage
22 or over $5 B
Term for the return of a portfolio above the benchmark that can be attributed to active management
Alpha
What percentage of the total U.S Market does the S&P 500 represent?
80%
What is the difference between an investment grade bond and non-investment grade?
The rating they are provided by Moody's, Fitch or S&P
What would be more diversified? Investing in 10 different stocks or investing in VOO (S&P 500 ETF)
VOO
What is larger the total equity market or the total bond market
The bond market is significantly larger than the equity market, with a total size of over $100 trillion, compared to the equity market's $70 trillion.
Is it possible to be over diversified -- provide rationale to why yes or no
Yes it is