Which of the Following Is True Regarding Active Portfolio Management

question 14

Multiple Choice

Which of the following is true regarding active portfolio management strategy?

• A) The goal of active portfolio management is to earn an excess return on the risk-adjusted basis
• B) An actively managed portfolio has lower total transaction costs
• C) An actively managed portfolio has lower risk than the passive benchmark
• D) A key to success for an actively managed portfolio is to maximize trading activity
• E) All of the above

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Definitions:

Temples

Religious buildings dedicated to worship or the housing of deities, significant in various cultures and religions around the world.

Hierarchy Of Scale

An artistic convention in which greater size indicates greater importance.

Warka Vase

An ancient Sumerian carved alabaster stone vase found in the temple complex of Uruk, depicting early forms of writing and narrative relief sculpture, dating from around 3200 BCE.

Dedicant

A person who dedicates something, particularly in a religious or spiritual context, such as dedicating a temple or oneself to a deity.