Active Portfolio Managers Try to Construct a Risky Portfolio with _________

question 48

Multiple Choice

Active portfolio managers try to construct a risky portfolio with _________.

• A) a higher Sharpe measure than a passive strategy
• B) a lower Sharpe measure than a passive strategy
• C) the same Sharpe measure as a passive strategy
• D) very few securities
• E) none of these

---

Definitions:

Masters and Johnson

Masters and Johnson were pioneering researchers in the field of human sexual response and dysfunction, known for their observations and clinical studies conducted from the 1950s through the 1970s.

Overjustification Effect

The phenomenon where providing external incentives for an already internally rewarding behavior can lead to a reduction in intrinsic motivation.

Premack Principle

A principle of reinforcement that states a more preferred activity can be used as a reward to reinforce a less preferred activity.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, necessitating control and coercion by management.