Which of the Following Statements About Returns-Based Analysis or Effective

question 78

Multiple Choice

Which of the following statements about returns-based analysis or effective mix analysis is true?

• A) This analysis compares the historical return pattern of the portfolio in question with the historical returns of various well-specified indexes.
• B) This analysis uses sophisticated quadratic programming techniques to indicate what styles or style combinations were most similar to the portfolio's actual historical returns.
• C) This analysis is based on the belief that the portfolio's current make-up will be a good predictor for the next period's returns.
• D) Choices a and b
• E) All of the above statements describe returns-based analysis or effective mix analysis

---

Definitions:

Sightseeing

The activity of visiting places of interest in a particular location, often done by tourists to explore and enjoy cultural, historical, or natural attractions.

Slip Off

The act of something becoming detached or moving out of place unintentionally, often resulting in a fall or decrease in position.

Mood-Congruent Memory

The tendency to recall memories that are consistent with one's current mood, which can influence and reinforce the emotional state.

Depressed Individuals

Persons experiencing a mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.