In an Efficient Market and for an Investor That Believes

question 14

Multiple Choice

In an efficient market and for an investor that believes in a passive approach to investing,what is the primary duty of a portfolio manager?

• A) Accounting for results
• B) Diversification
• C) Identifying undervalued stocks
• D) No need for a portfolio manager

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Definitions:

Encourages Ethical

Promoting or fostering a set of moral principles or values that govern an individual's or group's behavior.

Organizational Culture

The set of shared values, beliefs, and practices that influence the way an organization's members interact and work.

Appropriate System

A system that is suitable or fitting for a particular purpose, context, or need, often characterized by its effectiveness and efficiency.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of an organization.