Identify the Correct Statement Regarding Investment Management Approaches

question 80

Multiple Choice

Identify the correct statement regarding investment management approaches.

• A)Active investment managers are advocates of the EMH.
• B)Active portfolio managers pursue above-average returns through superior asset selection and timing decisions.
• C)Active managers will form index funds.
• D)Passive managers will try to outperform the market by picking 'winners'.
• E)None of these.

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Definitions:

Classical Conditioning

An acquisition method where two stimuli are frequently paired; the response, at first prompted by the second stimulus, is later prompted by the first stimulus in isolation.

Reinforcer

Any stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring again in the future.

Punisher

A person or factor that applies a penalty or negative consequence in response to an action, often used in the context of behavior modification.

Unconditioned Response

in classical conditioning, an unlearned, naturally occurring response (such as salivation) to anunconditioned stimulus (US) (such as food in the mouth).