The Best Way to Measure Adherence to the Objectives of Money

question 36

Multiple Choice

The best way to measure adherence to the objectives of money managers and the financial needs of investors is:

• A)To calculate the total returns on the portfolios that they manage
• B)To evaluate the risk exposure that the fund manager has accepted
• C)To calculate the dividend income that the portfolio has achieved
• D)To calculate the capital gains that the portfolio has achieved

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Definitions:

Quantitative Information

Data that can be measured and expressed numerically, allowing for statistical analysis and comparison.

Accounting Standards

Guidelines established by authoritative bodies that dictate how financial transactions and elements should be recorded and reported in financial statements.

Regulation S-X

A set of rules issued by the Securities and Exchange Commission (SEC) that dictates the form and content of financial statements submitted by publicly traded companies.

FASB Conceptual Framework

A theoretically based guide developed by the Financial Accounting Standards Board for creating financial accounting and reporting standards.