After Adjusting for Risk,the Returns to a Portfolio Can Differ

question 32

Multiple Choice

After adjusting for risk,the returns to a portfolio can differ from the benchmark portfolio as a result of:

• A)asset allocation.
• B)market timing.
• C)random events.
• D)all of the given answers.

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Definitions:

Ambiguous Stimulus

An ambiguous stimulus is any object, event, or situation that lacks clear interpretation or can be understood in multiple ways.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Five-factor Model

A psychological theory identifying five core dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Western Europe

A region comprising the western part of Europe, known for its distinct historical, cultural, and economic identity compared to other parts of the continent.