Active Portfolio Managers Try to Construct a Risky Portfolio with

question 39

Multiple Choice

Active portfolio managers try to construct a risky portfolio with

• A) a higher Sharpe measure than a passive strategy.
• B) a lower Sharpe measure than a passive strategy.
• C) the same Sharpe measure as a passive strategy.
• D) very few securities.

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Definitions:

Peptide

Short chains of amino acids, typically comprising 2-50 amino acids, which can perform a variety of functions in the body.

Proton Donor

A substance that releases hydrogen ions (H+) in solution, thus behaving as an acid according to the Bronsted-Lowry theory.

Neutral Substance

A chemical compound that is neither acidic nor basic and does not change the color of litmus paper.

Acid

Molecule that is a proton donor; any substance that releases hydrogen ions (H+).