Even If the Markets Are Efficient, Professional Portfolio Management Is

question 56

Multiple Choice

Even if the markets are efficient, professional portfolio management is still important because it provides investors with ________.
I. low cost diversification
II. a portfolio with a specified risk level
III. better risk-adjusted returns than an index

• A)I only
• B)I and II only
• C)II and III only
• D)I, II and III

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Definitions:

President

The elected head of a republican state or organization, responsible for leading and sometimes representing the entity in various capacities.

Congress

The national legislative body of a country, particularly in the United States, consisting of the Senate and the House of Representatives.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring financial stability.

Commercial Banks

Commercial banks are financial institutions that accept deposits, offer checking account services, and make loans to individuals and businesses.