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.

---

Definitions:

Sperm

Male gamete having a haploid number of chromosomes and the ability to fertilize an egg, the female gamete.

Egg

Also called an ovum; haploid cell that is usually fertilized by a sperm to form a diploid zygote.

Fertilize

The process of a sperm cell joining with an egg cell to initiate the development of a new organism.

Cellular Differentiation

Process and developmental stages by which a cell becomes specialized for a particular function.