If a Professionally-Managed Portfolio Consistently Outperforms the Market Proxy on a Risk-Adjusted

question 38

Multiple Choice

If a professionally-managed portfolio consistently outperforms the market proxy on a risk-adjusted basis and the market is efficient, it should be concluded that

• A)the CAPM is invalid.
• B)the proxy is inadequate.
• C)either the CAPM is invalid or the proxy is inadequate.
• D)the CAPM is valid and the proxy is adequate.

Recognize the utility of brainstorming and mind mapping in the idea generation and organization process.

Identify strategies for minimizing message distortion in communication.

Understand the key factors that contribute to successful cultural and organizational change.

Identify strategies to overcome resistance to organizational change.

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Definitions:

Psychic

A person who claims to use extrasensory perception (ESP) to identify information hidden from the normal senses, or someone deeply sensitive to spiritual forces.

Establish Separate

To create or set up something (such as a unit, institution, or residence) to function independently or in a newly segregated manner.

Living Together

A situation where two or more people, often in a romantic relationship, share a common residence without being legally married.

Chance of Divorce

A statistical measure that estimates the probability of a marriage ending in divorce based on various demographic, socio-economic, and personal factors.