Active Portfolio Managers Try to Construct a Risky Portfolio with

question 39

Multiple Choice

Active portfolio managers try to construct a risky portfolio with

• A) a higher Sharpe measure than a passive strategy.
• B) a lower Sharpe measure than a passive strategy.
• C) the same Sharpe measure as a passive strategy.
• D) very few securities.

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Definitions:

Human Rights Legislation

Laws designed to protect individuals' fundamental rights and freedoms from infringement, often by the state or other individuals.

Businesspeople

Individuals who are involved in activities of commerce or trade, often owning or managing businesses.

Province

A territorial unit of administrative division within certain countries, often with its own local government.

Constitutional Rigidity

Describes a constitution that is difficult to amend or change, often requiring a significant process or consensus, which ensures stability but can resist progress.