The Critical Variable in the Determination of the Success of the Active

question 24

Multiple Choice

The critical variable in the determination of the success of the active portfolio is the share's ________.

• A)alpha/non-systematic risk
• B)alpha/systematic risk
• C)delta/non-systematic risk
• D)delta/systematic risk

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Definitions:

Ultra Vires

Acts or decisions made by an entity that are beyond the scope of powers granted by its constitution or laws.

Articles of Incorporation

Legal document filed with a governmental entity to legally establish a corporation.

Incorporator

The person or entity that files the incorporation papers with the state to legally form a corporation.

Domestic Corporation

A corporation in the state in which it is incorporated.