If a Bond Portfolio Manager Believes I) in Market Efficiency

question 61

Multiple Choice

If a bond portfolio manager believes I) in market efficiency, he or she is likely to be a passive portfolio manager.
II) that he or she can accurately predict interest-rate changes, he or she is likely to be an active portfolio manager.
III) that he or she can identify bond-market anomalies, he or she is likely to be a passive portfolio manager.

• A)I only
• B)II only
• C)III only
• D)I and II

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Definitions:

Rate Of Conformity

The frequency at which individuals change their behavior or beliefs to align with those of a group.

Task Difficulty

The level of challenge or effort required to complete a task, varying based on complexity and individual abilities.

Confederates

In psychological research, individuals who appear to be participants but are actually part of the experiment, working under the direction of the researcher.

Social Influence

The process through which the real or implied presence of others can directly or indirectly influence the thoughts, feelings, and behavior of an individual.