There Appears to Be a Role for a Theory of Active

question 35

Multiple Choice

There appears to be a role for a theory of active portfolio management because

• A)some portfolio managers have produced sequences of abnormal returns that are difficult to label as lucky outcomes.
• B)the "noise" in the realized returns is enough to prevent the rejection of the hypothesis that some money managers have outperformed a passive strategy by a statistically small, yet economic, margin.
• C)some anomalies in realized returns have been persistent enough to suggest that portfolio managers who identified these anomalies in a timely fashion could have outperformed a passive strategy over prolonged periods.
• D)some portfolio managers have produced sequences of abnormal returns that are difficult to label as lucky outcomes and the "noise" in the realized returns is enough to prevent the rejection of the hypothesis that some money managers have outperformed a passive strategy by a statistically small, yet economic, margin.
• E)All of the options

Understand the matching law's role in determining behavior based on reinforcement schedules and alternatives.

Examine how momentary choices and overall patterns of responses are influenced by reinforcement size, quality, and availability according to the matching and maximizing laws.

Understand the evolution of communication models from simple to complex.

Recognize the importance of context in effective communication.

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Definitions:

Improvement

Enhancements made to an asset or property that increase its value or extend its useful life, rather than repairs which maintain its current condition.

Standard Costs

Predetermined or estimated expenses that are often used to measure and control the cost of producing a product or performing a service.

Management Tool

A management tool is any device, technique, or software used to manage an organization's processes, resources, or data effectively.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to a variation in produced units volume.