GUIC Quiz 21.02.24

Since 1980, which year had the highest Consumer Sentiment Index:

• 2000

• 2009

• 1991

• 2020

What inflation percentage has the ECB set as its target?

• 3%

• 1.5%

• 2%

• 2.8%

Why are investors withdrawing their funds from the Chinese market to invest in Europe?

• China, anticipating excessive growth, complicates position openings by injecting 2 trillion

  dollars into the market, flooding it with liquidity.

• China fears a real estate bubble and to calm the market, restricts the construction of new buildings, leading investors and therefore liquidity to flee to other continents.

• Restrictions on interbank loans imposed by the Bank of China following the full implementation of Basel III have caused investments to leave the country where regulations are more lenient

• China is currently experiencing a deflationary phenomenon, explaining investors' fear who

  withdraw their liquidity from the Chinese market.

• None of the above

What is one of the main reasons for the increase in the Consumer Sentiment Index?

• Despite high unemployment, efforts made by the authorities have a positive effect on the CSI,

  thus adhering to the parameters of the Phillips curve

• The market is growing significantly, which has a positive effect on the CSI because households will have to pay more to get consumer goods, contributing to a certain economic growth.

• Although the US economy is growing below expectations, downward inflation has a positive

  effect on the CSI.

• The expectation of the Fed increasing its rates in the second quarter of this year leads to an

  increase of the CSI.

• None of the above

Why is there a greater focus on the luxury sector?

• Because the European industry, facing strong Chinese competition, is in a weak position and

  its expected growth is low.

• Because the European sector expects the greatest stability in the coming years.

• Bernard Arnault strongly attracts investments by promising rapid growth in the coming years.

• The European tech industry lags behind the competition and its chances of growth are low despite the large share it takes in the market.

• Aucune des réponses précédentes

What is/are the possible reason(s) for the ECB not to decrease its interest rate as rapidly in the coming months?

• If problems in the Red Sea persist, a resurgence of inflation is possible.

• Unemployment is too low; reducing rates soon would lead to a shortage of labor for European companies that would invest more.

• Due to the strong power of the Dollar, it is the Fed that dictates the course of action, and as it is not expected to decrease its rates, neither is the ECB

• The sharp increase in wages along with a decrease in rates could raise fears of a real estate bubble.

According to theory, most investors are

• Investing on the minimum variance portfolio

• Investing somewhere on the red line

• Fully invested on the market portfolio

• Investing somewhere on the green line

What is the main reason retail investors invest in ETFs?

• Maximize returns

• Filter sectors

• Diversification

• Align with GUIC departments

What distinguishes Strategic Asset Allocation (SAA) from Tactical Asset Allocation (TAA)?

• SAA involves frequent adjustments based on short-term market conditions, while TAA is a fixed, long-term plan.

• SAA is a long-term strategy based on overall financial objectives, while TAA involves short- to medium-term adjustments in response to changing market conditions.

• SAA is primarily focused on short-term market opportunities, while TAA is a dynamic strategy based on long-term financial goals.

• SAA is a long-term strategy based on overall financial objectives, while TAA involves rebalacing the portfolio after profits.

What is our current SAA?

• Minimum Variance

• Core & Satellite

• Equal weighted

• ESG Integration