One Method Professional Managers Use to Manage Pension Funds, Endowment

question 30

Multiple Choice

One method professional managers use to manage pension funds, endowment funds, foundations, and other large portfolios that have a long-term focus with required payout is the:

• A)Markowitz method.
• B)core-satellite portfolio approach.
• C)market line method.
• D)capital market line methoD.

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Definitions:

Standard Error of Estimate

A measure of the accuracy of predictions made with a regression line, indicating the typical distance that the observed values fall from the regression line.

Coefficient of Determination

A statistical measure represented by R-squared, indicating the proportion of the variance in the dependent variable predictable from the independent variable(s).

Unexplained Variation

The portion of the total variation in a set of data that cannot be attributed to the variables considered in a study or model.

Unbiased Estimator

A statistic used to estimate a parameter of a population that, on average, exactly equals the true parameter.