The Major Requirements of a Portfolio Manager Include the Following

question 100

Multiple Choice

The major requirements of a portfolio manager include the following, EXCEPT

• A) follow the client's policy statement.
• B) completely diversify the portfolio to eliminate all unsystematic risk.
• C) the ability to derive above-average risk adjusted returns.
• D) completely diversify the portfolio to eliminate all systematic risk.
• E) deliver on expectations and produce an additional alpha component.

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Definitions:

Disposable Income

The total financial resources available to people or households for savings and expenses after subtracting income tax.

Saving

The process of setting aside a portion of current income for future use, either by depositing it into a bank or purchasing a financial asset.

Disposable Income

The sum of funds available to a person or family for spending or saving once income taxes are subtracted.

Consumption

The action or process of using goods and services for personal use or enjoyment within an economy.