Which of the Following Statements Accurately Represents What Clients Can

question 4

Multiple Choice

Which of the following statements accurately represents what clients can do to ensure that their portfolios reflect their own specific risk-return preferences?

• A) Clients need to develop monitoring procedures to evaluate their manager's investment activities relative to predefined goals and constraints
• B) Clients need not pay very close attention to their investment objectives if they have an effective relationship with their manager
• C) The client will have to subordinate their individual preferences to all the clients in the management firm for optimal results.
• D) Rather than give overly detailed investment objectives, the client should be prepared to allow their manager to interpret for them the optimal tradeoff between risk and return

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Definitions:

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it within working memory or to encode it for storage in long-term memory.

Physical Features

Characteristics of the body's appearance, including height, weight, skin color, hair type, and facial structure.

Stimulus

Any event or situation that evokes a response from an organism.

Rote Repetition

A memorization technique based on the repeated reading or recitation of material.