“Futures Markets and Risk Management”
Imagine that you are a financial manager. Determine three key drivers for evaluation when considering whether to invest in the futures market, indicating your likelihood to do so. Provide support for your rationale.
Justify why using interest rate swaps is an effective way to control risk and improve return for a fixed income portfolio. Provide support for your justification.
“Portfolio Performance Evaluation”
Take a position on the following statement: Conventional wisdom says one should measure a manager’s investment performance over an entire market cycle. Support your response with arguments from the text.
Determine whether or not the universe of similar investment managers overcomes the statistical problems associated with instability of beta or total variability. Support your position.