The Goal of Active Equity Management Is to Earn a Return

question 27

True/False

The goal of active equity management is to earn a return that exceeds the return of a passive benchmark portfolio, net of transaction costs, on a risk-adjusted basis.

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Definitions:

Approach-avoidance Conflict

A psychological struggle or dilemma when a goal has both attractive and unattractive aspects, leading to ambivalence.

Approach-approach Conflict

A situation in psychology where an individual must choose between two equally appealing options, causing conflict due to the difficulty in making a decision.

Double approach-avoidance Conflict

A decision-making conflict involving two options, each with both appealing and negative aspects, leading to ambivalence.

Avoidance-avoidance Conflict

A psychological conflict that arises when an individual must choose between two negative or undesirable options.