8 Asset Classes

Question 1

Name 5 Asset Classes

Answer 1

1 Cash 
2 Fixed Interest
3 Equities
4 Property
5 Alternative Assets

Question 2

Cash

Answer 2

Protection £85K

Question 3

Fixed Interest Features

Answer 3

1 Issuers Name - identifies issuer and who going to pay interest and capital
2 Coupon - nominal value/par and the coupon rate
3 Maturity Date

Question 4

Outline factors that affect share prices

Answer 4

1 External economic and political factors
2 Investment sentiment
3 Profit expectation
4 Dividend Expectation
5 Takeover activity
6 Quality of management

Question 5

Costs for equities

Answer 5

1) stamp duty reserve tax on 0.5% on purchase

2) Panel of Takeovers and Mergers Levy (PTM) over £10K

Question 6

Hedge Funds advantages and disadvantages

Answer 6

advantages
Absolute Return
Low Correlation
Low Volatility
Diversification
Disadvantage
Liquidity
Regulatory Risk
Leveraging
Currency

Question 7

Outline The Business Cycle

Answer 7

Recovery followed by economic growth
Boom
Slowdown
Recession