Portfolio Managers Paul Martin and Kevin Krueger Each Manage $1,000,000

question 11

Multiple Choice

Portfolio managers Paul Martin and Kevin Krueger each manage $1,000,000 funds.Paul Martin has perfect foresight and the call option value of his perfect foresight is $150,000.Kevin Krueger is an imperfect forecaster and correctly predicts 50% of all bull markets and 70% of all bear markets.The correct measure of timing ability for Kevin Krueger is __________.

• A) 20%
• B) 60%
• C) 75%
• D) 120%

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Definitions:

Intention

A mental state that represents a commitment to carrying out an action or actions in the future.

Sex Stereotypes

Generalized views or preconceived ideas about individuals based solely on their biological sex, often leading to biased attitudes and behaviors.

Competence

The ability of an individual to do a job properly, encompassing a combination of skills, knowledge, and experience.

Male Subtypes

Categories or groups based on distinct characteristics, behaviors, or roles associated with males in a given context.