The Two Questions When Assessing the Performance Measurement of an Investment

question 67

Multiple Choice

The two questions when assessing the performance measurement of an investment manager include:

• A) did the manager follow the client's policy statement?
• B) did the manager completely diversify the portfolio to eliminate all unsystematic risk?
• C) why did the portfolio manager perform as he or she did?
• D) did the manager have the ability to derive above-average risk adjusted returns?
• E) did the manager deliver on expectations and produce an additional alpha component?

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Definitions:

Vaginosis

A condition characterized by an imbalance of the naturally occurring bacteria in the vagina, leading to symptoms like discharge, odor, and irritation.

Candidiasis

A fungal infection caused by Candida yeasts, commonly affecting areas like the mouth, throat, and genitals, known as thrush when occurring in the mouth.