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:

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group, irrespective of the person's chronological age.

Chronological Age

The amount of time that has passed since an individual's birth, measured in years.

IQ

Intelligence quotient, a measure of a person's cognitive abilities in relation to their age group.

Superior Verbal

Describes individuals who have exceptionally good skills in expressing themselves using language.