The Two Main Components of an Investment Strategy of a Managed

question 14

Multiple Choice

The two main components of an investment strategy of a managed fund are:

• A) top-down selection and asset allocation
• B) stock selection and asset allocation
• C) hedging and stock selection
• D) none of these choices

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Absolute Advantage

Absolute Advantage refers to the capability of a country or entity to produce a good or service more efficiently than its competitors, using fewer resources.