Benchmark Risk

question 30

Multiple Choice

Benchmark risk

• A)is inevitable and is never a significant issue in practice.
• B)is inevitable and is always a significant issue in practice.
• C)cannot be constrained to keep a Treynor-Black portfolio within reasonable weights.
• D)can be constrained to keep a Treynor-Black portfolio within reasonable weights.
• E)none of the above.

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Definitions:

Positive

Exhibiting or emphasizing beneficial qualities, or expressing optimism and support.

Negative

Characterized by the absence rather than the presence of a particular attribute, feature, or outcome.

Delusion

A false belief strongly held despite incontrovertible evidence to the contrary.

Genetic Factors

Elements within an individual's DNA that can influence their traits and health.