The CFA Institute Divides the Process of Portfolio Management into Three

question 17

Multiple Choice

The CFA Institute divides the process of portfolio management into three main elements, which are ______, ______, and ______.

• A) planning; execution; results
• B) security selection; asset allocation; action
• C) planning; asset allocation; feedback
• D) planning; execution; feedback
• E) risk tolerance; feedback; action

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Definitions:

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Need for Affiliation

An individual's drive to relate to people and form social connections.

Intrinsic Motive

A type of motivation driven by an internal desire to perform a task for its own sake, due to personal satisfaction, interest, or enjoyment.

Behavioral Need

Psychological or physiological necessities that drive behaviors in individuals, seeking fulfillment to maintain well-being and homeostasis.