Which of the Following Statements Is false

question 58

Multiple Choice

Which of the following statements is false?

• A) A manager's choice to align with an investment style communicates information to clients about the investor's focus, area of expertise, and stock evaluation methods.
• B) An investment manager's style cannot be used as a basis for measuring the manager's performance relative to a benchmark.
• C) Style identification allows an investor to select investment managers that allow his overall portfolio to be properly diversified.
• D) Style investing allows control of the total portfolio to be shared between the investment managers and a knowledgeable sponsor.
• E) None of the above (all are true statements)

---

Definitions:

Undesirable Elements

Refers to aspects or components within a context, environment, or system that are considered harmful, unwanted, or negative.

Negative Ethical Consequences

Adverse outcomes that arise from actions or decisions that are considered morally wrong, harming individuals or society as a whole.

Morals

People’s adherence to right or wrong behavior and right or wrong thinking.

Right or Wrong Behavior

Actions or conduct judged according to moral principles, ethical standards, or legal guidelines.