Which of the Following Statements Concerning Active Equity Portfolio Management

question 38

Multiple Choice

Which of the following statements concerning active equity portfolio management strategies is true?

• A) The goal of active equity portfolio management is to earn a portfolio return that exceeds the return of a passive benchmark portfolio (net of transaction costs) on a risk-adjusted basis.
• B) An actively managed equity portfolio has lower total transaction costs.
• C) An actively managed equity portfolio has lower risk than the passive benchmark.
• D) A key to success for an actively managed equity portfolio is to maximize trading activity.
• E) An actively managed equity portfolio has lower turnover.

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