Even If the Markets Are Efficient,professional Portfolio Management Is Still

question 26

Multiple Choice

Even if the markets are efficient,professional portfolio management is still important because it provides investors with _________.
I.low cost diversification
II.provides a portfolio with a specified risk level
III.provides better risk adjusted returns than an index

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Relevant Benefits

The advantageous outcomes or gains that are directly attributable to a specific action or investment.

Relevant Costs

Costs that are directly affected by a specific business decision and should be considered when making that decision.

Fixed Costs Per Unit

The fixed costs associated with a product divided by the number of units produced, highlighting how these costs dilute with increased production.

Joint Products

A scenario in production where a single process yields multiple products simultaneously.