Portfolio Performance Is Often Decomposed into Various Subcomponents Such as the Return

question 80

Multiple Choice

Portfolio performance is often decomposed into various subcomponents such as the return due to ___________.
I.broad asset allocation across security classes
II.sector weightings within equity markets
III.security selection with a given sector
The one decision that contributes most to the fund performance is

• A) I
• B) II
• C) III
• D) All contribute equally to fund performance

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Definitions:

Entrepreneurship

The act of creating, designing, and running a new business, often characterized by innovation and risk-taking.

Positive Reinforcement

A technique used to encourage desired behaviors by offering rewards or positive outcomes when those behaviors are exhibited.

Desired Behavior

The specific actions or conduct that an entity, such as an organization, seeks to encourage or reinforce among its members.

Reward

A benefit given for some form of achievement, service, or behavior deemed desirable.