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)

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Definitions:

Behavioral

Pertaining to the actions or reactions of a person or animal in response to external or internal stimuli.

Market-product Grid

A matrix that helps companies analyze their product lines and markets to identify opportunities for expansion, diversification, or concentration.

Harvesting Strategy

A business plan for obtaining the maximum possible benefit from a product, division, or market before it declines.

80-20 Rule

A principle that asserts that 80% of effects come from 20% of causes, often used in business to highlight the importance of focusing on key contributors to revenue or problems.