A Portfolio Manager Should Be Able to Perform All of the Following

question 66

Multiple Choice

A portfolio manager should be able to perform all of the following functions,except

• A) Determine risk-return preferences.
• B) Eliminate systematic risk.
• C) Maintain diversification ensuring a stabilized risk class.
• D) Attempt to derive a risk-adjusted performance that is superior to the market.
• E) Administer the account, keep records and provide timely information.

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Definitions:

Distorted

The term distorted describes something that has been twisted out of its original, true, or natural shape, often leading to a misrepresentation of reality.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

Clarification

The act of making a statement or situation less confused and more comprehensible.

Concerns

Issues or matters of interest or importance that require consideration or attention.