Which of the Following Statements Is FALSE

question 64

Multiple Choice

Which of the following statements is FALSE?

• A) A manager's choice to align with an investment style communicates information to clients about the investor's focus, area of expertise, and stock evaluation methods.
• B) An investment manager's style cannot be used as a basis for measuring the manager's performance relative to a benchmark.
• C) Style identification allows an investor to select investment managers that allow his overall portfolio to be properly diversified.
• D) Style investing allows control of the total portfolio to be shared between the investment managers and a knowledgeable sponsor.
• E) An investor needs to be cautious about a manager whose portfolio exhibits unintentional style drift.

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Definitions:

Role Model/Mentor

A role model or mentor is a person whose behavior, example, or success is or can be emulated by others, especially by younger individuals.

Nuclear Families

A domestic arrangement where both parents and their kids cohabit as a singular family unit.

Extended Families

A network of relatives beyond the immediate family, including grandparents, aunts, uncles, and cousins, who often live together or maintain close emotional ties.

Single-parent Families

Households headed by only one parent, encompassing the responsibilities of raising children.