One of the Techniques Adopted by Managers to Improve Performance

question 7

Multiple Choice

One of the techniques adopted by managers to improve performance through market timing is to:

• A) maintain a constant percentage of amount invested in bonds and stock.
• B) adjust the expected return on the portfolio in anticipation of changes in market.
• C) adjust the unsystematic risk in anticipation of changes in market.
• D) adjust the average beta on the portfolio in anticipation of changes in market.

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Definitions:

Formal Proposal

A detailed and structured proposition or plan, often submitted for evaluation or funding purposes.

Inductive Reasoning

Reasoning that arrives at a general conclusion from specific instances or examples.

Reliable Cars

Describes vehicles known for their dependability, low maintenance, and minimal breakdowns, providing consistent performance over time.

Routine Maintenance

Regularly scheduled tasks that keep equipment or systems functioning smoothly.