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:

Specialization

The process by which individuals, organizations, or nations concentrate on producing a limited range of goods or services, to increase efficiency and productivity.

Exchange

The act of trading goods, services, currencies, or other commodities between parties.

Self-interest

The pursuit of personal advantages and well-being, often guiding individual economic decisions.

Division of Labor

A method that breaks down the production of a product into a series of specific tasks, each performed by a different worker.