Ideally, Clients Would Like to Invest with the Portfolio Manager

question 18

Multiple Choice

Ideally, clients would like to invest with the portfolio manager who has

• A) a moderate personal risk-aversion coefficient.
• B) a low personal risk-aversion coefficient.
• C) the highest Sharpe measure.
• D) the highest record of realized returns.
• E) the lowest record of standard deviations.

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Definitions:

Factor Analysis

A statistical technique applied to explain the variation among observed, correlated variables through a smaller set of unseen variables known as factors.

Intelligence Scores

Quantitative measures of an individual's cognitive abilities, often obtained through standardized tests.

Savant Syndrome

A condition where an individual demonstrates profound and prodigious capacities or abilities far in excess of what would be considered normal, often alongside a developmental condition such as autism.

Autism

A neurodevelopmental disorder characterized by challenges with social interaction, communication, and by restricted and repetitive behavior.