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

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Corporate Customers

Corporate customers are businesses or organizations that purchase goods or services in bulk for use in their operations, often through contracts or strategic agreements.

Relaxation Technique

Methods or activities designed to reduce stress and anxiety, promoting a state of calm and relaxation.

Brutally Honest

Being uncompromisingly forthright and truthful, even if the truth may be harsh or unpleasant.

Salesperson Uses

The strategies, techniques, and tools employed by sales professionals to engage with customers and successfully sell products or services.