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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:

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often emphasizing the exchange between leader and followers.

Institutionalization

The process by which practices and activities become established norms or standards within an organization or society.

Resist Change

The resistance to alter established habits, processes, or structures within an individual or group context.

Institutionalize

To establish something as a norm or standard in an organization or culture, often referring to the process of embedding practices, beliefs, or systems within an institution.

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