Which of the Following Is True About Analytical Tools Useful

question 9

Multiple Choice

Which of the following is true about analytical tools useful in "strategic" long horizon, big picture) and "tactical" shorter horizon, more specific) investment policy analysis for portfolio management?

• A) Modern portfolio theory MPT) is most useful for strategic analysis and equilibrium asset price modeling such as the CAPM) is most useful for tactical analysis.
• B) Modern portfolio theory MPT) is most useful for tactical analysis and equilibrium asset price modeling such as the CAPM) is most useful for strategic analysis.
• C) Both models are equally useful at both levels.
• D) Neither theory is very useful at either level.

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Definitions:

Difficulty To Throw Things Away

A reluctance or inability to discard items that are no longer needed, often leading to clutter and hoarding behaviors.

Trichotillomania

A disorder characterized by a compulsive urge to pull out one’s hair, leading to noticeable hair loss and emotional distress.

OCD-Related Disorders

A category of psychiatric disorders characterized by obsessions (intrusive, unwanted thoughts) and compulsions (repetitive behaviors or mental acts) that an individual feels driven to perform.

Compulsively Pulls Hair

A behavioral condition known as trichotillomania, characterized by an irresistible urge to pull out one's own hair.