and his wife, , both work in the airline industry. They are in their 40s, and they have a high tax bracket and both are concerned about their after-tax rate of return. A meeting with their financial planner reveals that they are primarily focused on long-term capital gains and will need at least a 9% to 11% average rate of return to meet their retirement goals. They desire a diversified portfolio, and liquidity is not currently a major concern, Before their next meeting with their financial planner, however, and his wife wish to get a sense of how the economy might perform five years from today (because they believe that the airline industry is very sensitive to the economy). Which of the following would best help and ? Average prime rates charged by banks. Manufacturing and trade sales Manufacturers' new orders. New global regulations on trajectories of airplanes. The number of airplanes sold by Boeing Company and Learjet Company 2 years ago. is enrolled in the undergraduate Advanced Econometrics class at the Zicklin School of Business at Baruch College. Her class has been assigned a project that requires a time-series studies of historical trends of the economy of the United States of America. If begins to collect her data today, which of the following Variables would most probably be the least useful to her? Commercial and Industrial loans outstanding. Average prime rate charged by banks. Average duration of unemployment. Money Supply (M2) growth rate. Change in consumer price index for services. In the Investment Management Process, the objectives are stated in terms of ONLY Return and Risk. Which of the following is the most plausible reason why? Skewness and excess kurtosis of returns of relevant and corresponding assets and portfolios are assumed to be negative There does not need to be a reason for the focus on only return and risk Skewness is assumed to be negative and excess kurtosis is assumed to be positive, for returns of relevant and corresponding assets and portfolios Returns of the relevant and corresponding investment assets and/or portfolios are assumed to be normally distributed Skewness and excess kurtosis of returns of relevant and corresponding assets and portfolios are assumed to be positive The Investment Policy Statement (IPS) can best be described as: A contract between investors and and their investment managers. An introduction to the way investment managers SHOULD be evaluated. A document designed and recommended by the CFA Institute for all its members. A reference manual for all investors but nof for investment managers. The equivalent of a textbook of Investment Management