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Old 04-26-2017, 09:16 AM
arto83 arto83 is offline
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Default CDEF Additional asset class/factors excluded

I am drawing a blank on these 2 questions. I don't even know where to begin on identifying an additional asset class or approach that can be used to minimize risk. Any tips or pointers?

Also, when they ask for 2 factors excluded from the model what are they looking for? Would that be something like other economic indicators that could have an impact or perhaps immigration policy increasing exposure?

Thanks guys!
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Old 04-26-2017, 09:22 AM
Hartke Hartke is offline
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I was in a similar place when I got to that question. I cant give you specifics, but this was my reference for this question:

https://en.wikipedia.org/wiki/Asset_classes

Shows how much ALM knowledge I have. I felt like the guys from office space when they had to look up laundering in the dictionary.
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Old 04-26-2017, 10:30 AM
arto83 arto83 is offline
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Quote:
Originally Posted by Hartke View Post
I was in a similar place when I got to that question. I cant give you specifics, but this was my reference for this question:

https://en.wikipedia.org/wiki/Asset_classes

Shows how much ALM knowledge I have. I felt like the guys from office space when they had to look up laundering in the dictionary.
Im not loving the asset classes shown on the wikipedia site. only one of them is not included on the question. Leaning toward going with an additional "approach" but i have no idea what that means :-\
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...lost both his legs in a car accident....and still managed to walk it off.
...understands the ending of 2001: A Space Odyssey.
...really DOES find gold when he picks his nose.
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...can dribble a football.
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...CAN lick his elbow.
...can judge a book by its cover.
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Old 04-28-2017, 03:11 AM
yfwang yfwang is offline
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If you are already well diversified in terms of asset classes, then other approaches like diversifying through industries would be great.

What are your opinions on this.
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Old 02-07-2018, 09:37 AM
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Would relics and antiques collection be an asset class by itself?

My friend's uncle is specialized in exotic orchids culturing. Ultra rich people would pay a couple millions to just buy one strand of his orchids. Would that be considered a asset class? If you have 100 of those exotic orchids, you could be multi-billionaire.
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Old 02-07-2018, 11:23 AM
Amyashi Amyashi is offline
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Without stressing too much over your choice of alternative asset or approach, I think it's better to approach the question from the perspective of fund objectives.

For example, I would look at what I identified as the key risks, how the current investment fund plays into mitigating or transferring these risks, look at CDEF's objectives and the current asset mix (sans alternative asset), see what it's lacking (too much volatility? too little liquidity? returns not good enough? too much positive correlation with market/S&P?) and work from there.

As for asset class, in addition to wikipedia, another source of ideas could be to look at some actively managed mutual funds and see what asset classes they're holding. For approaches, there were definitely at least one or two mentioned in the modules.

Hope that helps.
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Old 02-07-2018, 11:29 AM
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Thanks again!!
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Old 03-21-2018, 11:00 AM
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unicorngrrrrrrrl unicorngrrrrrrrl is offline
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Are the risks we must mitigate against the key risks identified in task 1 or the risks of the portfolio mix since this entire task centers around the annual asset mix review?
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Old 03-21-2018, 11:38 AM
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Quote:
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Are the risks we must mitigate against the key risks identified in task 1 or the risks of the portfolio mix since this entire task centers around the annual asset mix review?
if you're talking about the question in Task 1 where it asks you for key risks and mitigation strategies (in the same sentence), it's safe to assume that they want mitigation strategies for the key risks. that's what I did.
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Old 03-21-2018, 11:41 AM
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Quote:
Originally Posted by sungx88 View Post
if you're talking about the question in Task 1 where it asks you for key risks and mitigation strategies (in the same sentence), it's safe to assume that they want mitigation strategies for the key risks. that's what I did.
(s)he is referring to the last question in task 4.
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Chuck Norris...
...is allowed to talk about Fight Club.
...lost both his legs in a car accident....and still managed to walk it off.
...understands the ending of 2001: A Space Odyssey.
...really DOES find gold when he picks his nose.
...is a stunt double for Optimus Prime.
...can dribble a football.
...can sneeze with his eyes open.
...CAN lick his elbow.
...can judge a book by its cover.

Last edited by arto83; 03-21-2018 at 11:47 AM..
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