What Is the Major Question When Evaluating a Portfolio's Performance

question 27

Multiple Choice

What is the major question when evaluating a portfolio's performance?

• A) Does the portfolio align with the investor's characteristics?
• B) Does the expected return of the portfolio meet the needs of the investor?
• C) Is the return on the portfolio adequate to compensate for its risk?
• D) Is the portfolio's risk in line with the personal characteristics of the investor?

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Definitions:

Maturity Value

The amount payable to an investor at the end of a debt instrument's holding period.

Maturity Value

The total amount payable to an investment's holder at the investment's maturity date, including the principal and any interest earned.

Maker

In financial terms, the maker is typically the person who creates or signs a promissory note, thereby agreeing to pay the note’s value at maturity.

Notes Receivable

Represents claims against others, recorded by promissory notes, for money to be paid to the company.