Which of the Following Are Functions That a Portfolio Manager

question 9

Multiple Choice

Which of the following are functions that a portfolio manager should perform for clients?

• A) Determine investment objectives and constraints, diversify the portfolio and eliminate tax payments.
• B) Determine investment objectives, diversify the portfolio, maintain ethical standards and eliminate tax payments.
• C) Determine investment objectives and constraints, diversify the portfolio and maintain ethical standards.
• D) Determine investment constraints, maintain ethical standards and eliminate tax payments.
• E) Determine investment objectives and constraints, diversify the portfolio, eliminate tax payments and achieve risk adjusted return superior to the relevant benchmark.

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Definitions:

Pension Contributions

Funds put into a pension plan by individuals or employers intended to finance retirement benefits.

Health Contributions

Payments made towards health insurance or healthcare services, often deducted from an employee's salary or made by employers.

Federal Depository Banks

Banks that are authorized to hold deposits for the Federal Reserve System, facilitating the federal government's cash management and payments.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on employers in order to fund state workforce agencies and unemployment insurance.