The Two Main Questions When Assessing the Performance of an Investment

question 108

True/False

The two main questions when assessing the performance of an investment manager are: how did the portfolio manager actually perform, and, why did the portfolio manager perform as he or she did?

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Definitions:

Scarce Resources

Limited resources available to meet the unlimited wants and needs of individuals or societies.

Parameter Changes

Adjustments made to the variables or inputs that define the operation of a system or model.

Maximum Profit

The highest possible financial gain achievable by a business or investment, often the primary goal of economic activities and operations.

Corners

Points at which two or more lines or edges meet, often used in the context of geometry or spatial planning.