Using the SARA Model,the Final Step in Problem Solving Is

question 74

Multiple Choice

Using the SARA model,the final step in problem solving is

• A)assessment.
• B)analysis.
• C)arbitration.
• D)assistance.

---

Definitions:

Active Portfolio

An investment portfolio actively managed by a portfolio manager or investor aiming to outperform a benchmark index through regular buying and selling of securities.

Systematic Risk

This refers to the inherent risk that affects the entire financial market or a whole market segment, unpreventable through diversification.

Benchmark Risk

The risk that a portfolio's performance deviates from its benchmark index.

Portfolio Difference

The distinct variations and diversifications in an investment portfolio that aim at minimizing risk and maximizing returns.