Rather Than Relying on the Efficiency of a Single Portfolio

question 27

Multiple Choice

Rather than relying on the efficiency of a single portfolio (such as the market) ,multifactor models rely on ________ that an efficient portfolio can be constructed from a collection of well-diversified portfolios or factors.

• A) the stronger condition
• B) the neutral condition
• C) the weaker condition
• D) the unbiased condition

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Definitions:

Informational Reports

Documents that provide data, facts, and feedback without any analysis or recommendations.

Compliance

The act of conforming to rules, standards, or laws, often in a regulatory or legal context.

Operations

The day-to-day activities and administrative processes required for the smooth functioning and management of a business or organization.

Receptive Audience

An audience that is open and willing to listen, understand, and accept the message being communicated.