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The Treynor-Black Model Combines an Actively Managed Portfolio with an Efficiently

question 33

Multiple Choice

The Treynor-Black model combines an actively managed portfolio with an efficiently diversified portfolio in order to _______________________.
I.improve the diversification of the overall portfolio
II.improve the overall portfolio's Sharpe ratio
III.reach a higher CAL than otherwise would be possible


Definitions:

Fine Motor Skills

The ability to use small muscle groups for detailed movements, such as writing or buttoning.

Centration

The tendency to focus on one part of a stimulus, situation, or idea and exclude all others; a characteristic of preoperational reasoning.

Egocentrism

A cognitive characteristic where an individual has difficulty understanding or considering perspectives other than their own, prevalent in early childhood.

Egocentrism

The cognitive inability to understand or assume any perspective other than one's own, often experienced by children during early development stages.

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