USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 103

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 18.11. Which of the following statements is TRUE?

• A) Sector/security selection hurt the portfolio performance; returns were 1.4% less than if the manager invested the funds in stocks and bond indexes.
• B) Sector/security selection improved the port-folio performance by 1.4%; each sector return was higher than for index value.
• C) Sector/security selection hurt the portfolio performance; returns were 6.8% less than if the manager invested the funds in stocks and bond indexes.
• D) Sector/security selection improved the port-folio performance by 6.8%; each sector return was higher than for index return.
• E) None of these are correct.

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Definitions:

Team Reward Systems

Mechanisms designed to provide incentives or rewards to a group of individuals working together towards common goals.

Performance Management

A continuous process by which managers and employees work together to plan, monitor, and review an employee's work objectives and overall contribution to the organization.

Performance Appraisal

The process of evaluating an employee's job performance and providing feedback on their strengths and weaknesses.

Extinction

In psychology, a process by which a previously learned behavior decreases in frequency or stops altogether as a result of non-reinforcement.