The Primary Goal of Both Domestic and International Portfolio Managers

question 56

Multiple Choice

The primary goal of both domestic and international portfolio managers is:

• A) to maximize return for a given level of risk, or to minimize risk for a given level of return.
• B) to minimize the number of unique securities held in their portfolio.
• C) to maximize their WACC.
• D) all of the above

---

Definitions:

Compounded Monthly

A method of calculating interest where the interest earned on an investment is reinvested and earns additional interest in subsequent periods on a monthly basis.

Monthly Payments

Regular payments made over a set period of time, such as those for loans or subscriptions, calculated on a monthly basis.

Loan

An amount of money lent that must be repaid along with interest.

Compounded Daily

Interest calculation method where the interest is calculated and added to the principal amount daily, leading to increased earnings or payments over time.