Probably the Biggest Problem with Evaluating Portfolio Performance of Actively

question 4

Multiple Choice

Probably the biggest problem with evaluating portfolio performance of actively managed funds is the assumption that __________________________.

• A) the markets are efficient
• B) portfolio risk is constant over time
• C) diversification pays off
• D) security selection is more valuable than asset allocation

Understand the concepts of debits and credits in the double-entry accounting system.

Identify the normal balances of different types of accounts (assets, liabilities, equity).

Recognize the structure and purpose of T accounts and journal entries.

Understand the impact of transactions on shareholder's equity.