Which of the Following Statements About Returns-Based Analysis or Effective

question 78

Multiple Choice

Which of the following statements about returns-based analysis or effective mix analysis is true?

• A) This analysis compares the historical return pattern of the portfolio in question with the historical returns of various well-specified indexes.
• B) This analysis uses sophisticated quadratic programming techniques to indicate what styles or style combinations were most similar to the portfolio's actual historical returns.
• C) This analysis is based on the belief that the portfolio's current make-up will be a good predictor for the next period's returns.
• D) Choices a and b
• E) All of the above statements describe returns-based analysis or effective mix analysis

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Definitions:

Empowerment

is the process of providing individuals or groups with the authority, confidence, and resources needed to make decisions and take action.

Decision-Making

The process of making choices among alternative possible courses of action.

Referent Power

Influence based on the leader's personal traits, where followers identify with or want to emulate the leader.

Coercive Power

A form of authority that relies on the use of threats, punishment, or negative reinforcements to influence others' behavior or compliance.