What is meant by a top-down approach

Assignment Help Microeconomics
Reference no: EM131781094

Question: The following two quotes are from the website for the FTIF Franklin High Yield Fund (dated December 31, 2009 (at https://www.franklintempleton .com.es/pdf/funds/fdata/0825_ksp_es.pdf):

a. "Portfolio risk is controlled primarily through our extensive bottom-up, fundamental analysis process, as well as through security and industry diversification." What does this mean?

b. "The overall volatility of the product (i.e., standard deviation) and tracking error versus its benchmark and peer group is monitored and projected from a top-down quantitative approach." What is meant by a top-down approach? (In the next chapter, the quantitative approach and tracking error will be discussed.)

Reference no: EM131781094

Questions Cloud

Discuss interest payments are made each june : James Corporation is planning to issue $507,000 worth of 6 percent bonds that mature in 5 years. Interest payments are made each June 30 and December 31
Regional retailer is looking for ways to increase profits : A small regional retailer is looking for ways to increase profits.
Identify an operating system that runs a cell phone : MN404 - T3 2017 Fundamentals of Operating Systems and Java Programming Assignment. identify an operating system that runs a cell phone
Identify a problem that rdbms practices : Identify a problem that standard relational database management (RDBMS) practices do not completely address, and to innovate a solution.
What is meant by a top-down approach : "The overall volatility of the product (i.e., standard deviation) and tracking error versus its benchmark and peer group is monitored and projected.
What is the essential ingredient in portfolio strategies : Those portfolio managers who follow an indexing strategy are said to be "index huggers." Why?
How would you respond to the portfolio manager : A corporate bond portfolio manager was overhead asking: "Why do I need a credit risk model? I can get information about the probability of default from credit.
Maximize profits through warehousing and transportation cost : How is the company going to minimize cost and maximize profits through warehousing and transportation cost?
What are the dpmo for the individual characteristics : what are the dpmo’s for the individual characteristics and what is the overall dpmo for the boards?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd