Bloomberg Market Concepts: Portfolio Management with verified

questions and answers

1. What could you type into the command line to learn what an index is?

Index. Correct answer

2.Look at the description pages for two different companies. Based on P/E and dividend yield data
alone, which of the following is most likely true about the nature of these stocks?

Harley-Davidson is a value stock compared to Zynga. Correct answer

3. A passive fund manager would be most likely to do which of the following?

Match the fund's performance to the benchmark index 's performance. Correct answer

4. Which of the following best describes an RFP's path?

An investment consultant asks multiple fund managers to submit an RFP. Then the fund managers
prepare and present their RFPs to the consultant and/or the asset owner, who will then decide which
manager to select. Correct answer

5. What is one way investment consultants protect their clients' money during periodic performance
reviews?

Investment consultants check that the portfolio manager's performance was based on skill investing in
the agreed-upon stocks or sectors. Correct answer

6. Let's say you want to adjust the market cap in your EOS search to increase the number of matches.
What should you click to do this most efficiently?

On the given screen, one should click on Current Market Cap >200000 Million to adjust the market cap.
Correct answer

7. Click in the correct field to change the Current Market Cap.

highlighted 200000. Correct answer

8. Click on the amber field that will let you load the custom list we just designed.

GICS next to comp source. Correct answer

9. Select from the dropdown menu the custom list we just designed

My comp groups. Correct answer

10. Below is the EQRV screen for Morgan Stanley that you just created. Based on this information alone,
would a portfolio manager consider Morgan Stanley cheap or expensive relative to its peers?

Cheap because its blended forward P/E is lower than its peers. Correct answer
11. Which of the following are some of the main functions that help an analyst explore stocks generated
by EQS?

DES, CN, FA. Correct answer

12. The below EQRV screen was captured before the markets opened on April 29, 2019. According to
the information shown, is Goldman Sachs trading rich or cheap on a blended forward P/E basis,
relative to its historical average?

Goldman Sachs is trading cheap as it is 1.3 standard deviations below its two-year historical average,
relative to its peers. Correct answer

13. Examine the below GF screen for the Walt Disney Company. Which of the following statements is
true at the time of this screenshot?

Disney is trading at a blended forward P/E ratio of 21.2425. At this moment, the ratio of Disney's
blended forward P/E to that of the S&P 500 Index is 22% higher than its average over the past 5 years.
Correct answer

14. Why do the regular meetings between a portfolio manager and his or her team of analysis take
place in what is sometimes called "the war room"?

The meetings are characterized by the team pitching ideas and strategizing their outcomes. Correct
answer

15. You are creating in PRTU the Value Fund portfolio we just discussed. Select the correct position type.
pt 1

Position Type amber box. Correct answer

16. You are creating in PRTU the Value Fund portfolio we just discussed. Select the correct position type.
pt 2

Shares / Par Amount. Correct answer

17. Click on the button to create your portfolio

Correct. Correct answer

18. Why would a portfolio manager create a multi-factor score in WATC?

to evaluate multiple criteria at once. Correct answer

19. Which of the following statements best matches your beliefs as a value portfolio manager?

A higher dividend yield and a lower P/E are preferable. Correct answer

20. Imagine that 5% of your portfolio is Verizon stock. The stock performs well, its market capitalization
increases, and now it makes up 8% of your portfolio. This scenario is an example of what type of
position?

Drifting weight. Correct answer

21. After you've finished building your portfolio and adding securities to it in PRTU, what is your next
logical step?

To analyze the portfolio in PORT. Correct answer

22. You want to find out in which sector your portfolio is most undervalued in terms of P/E. What
should you click first?

Price to Earnings Ratio. Correct answer

23. In which sector is your portfolio most undervalued according to P/E? Click on the correct part of the
chart.

Real estate. Correct answer

24. Read the QuickTake to learn more about active versus passive investing. Then click Next to continue

n/a. Correct answer

25. What does Best 1 mean? Use the chart below to determine the definition.

Best total return and the date this occurred. Correct answer

26. Joaquin recently learned about a fund that boasted a 25% return in its marketing materials. Eagerly,
he invested $100,000 without doing any research into the fund. A year later, he had $125,000 in the
bank. However, he was not pleased with the high return once he learned about the Sharpe Ratio.
What is the most likely reason why?

He learned that the portfolio's volatility was 50%, so he could have made or lost $50,000. Taking on this
level of risk may not justify the return. Correct answer

27. You are analyzing your portfolio after the first quarter of 2019 to examine the reasons behind its
change in performance since 2018. Based on the below table alone, what conclusion can you draw
about your portfolio?

Your portfolio is performing about 2% worse than the benchmark. You picked the wrong sectors but the
right stocks in those sectors. Correct answer

28. Which of the following tabs in PORT allow you to view your portfolio's overall current performance
using real-time data?

The Main View subtag in the Intraday tab. Correct answer

29. Yesterday, your portfolio's closing market value was $350,000. When the market opened this
morning, its value immediately dropped to $340,00. By noon, the value had risen to $355,000. It is
currently 2:00 pm, and your portfolio's value is $365,000. What's the P&L?

$15,000. Correct answer

30. Using the Monte Carlo simulation, what should you click to show, as.a percentage, the most you
could lose with a 99% confidence level in a single day as of December 31, 2018?

Amber P&L field. Correct answer

31. Using the Monte Carlo simulation, what should you click in the dropdown menu to show, as a
percentage, the most you should lose with a 99% confidence level in a single day as of December 31,
2018?

Returns (%). Correct answer

32. What should you click next?

Click here. Correct answer

33. Now click on the number that shows, as a percentage, the most you could lose with a 99%
confidence level in a single day as of December 31, 2018.

2.03, highlighted in green. Correct answer

34. Which of the following quantifies how closely a manager's return pattern follows that of a
benchmark index?

Tracking error. Correct answer

35. You are analyzing risk factors in your portfolio to determine how susceptible you are to risk. Of the
factors shown in the screenshot below, which Correct answerwer choices has the highest active
exposure and the highest contribution to risk?

Dividend yield. Correct answer

36. The below image captures the VaR on May 20, 2019. What percentage of your portfolio could you
lose on average if the next day is one of the worst five days of the last 100?

1.27. Correct answer

37. According to the below information, what would happen to your portfolio's P&L if the Lehman
default from 2008 were happening in May 2019?

Your portfolio would do better than your benchmark, losing about 16% instead of the benchmark's loss
of approximately 20%. Correct answer