A Portfolio Manager's Ranking Within a Comparison Universe May Not

question 77

Multiple Choice

A portfolio manager's ranking within a comparison universe may not provide a good measure of performance because

• A) portfolio returns may not be calculated in the same way.
• B) portfolio durations can vary across managers.
• C) if managers follow a particular style or subgroup, portfolios may not be comparable.
• D) portfolio durations can vary across managers and if managers follow a particular style or subgroup, portfolios may not be comparable.
• E) All of the options are correct.

---

Definitions:

Trade Feedback Effect

A phenomenon where an increase in exports leads to an increase in national income and, consequently, an increase in imports.

Economic Flows

Refers to the movements of funds that reflect economic activity, including the flow of money within and between countries, such as trade, investment, and financial transactions.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Countertrade

A trade mechanism in which goods or services are exchanged for other goods or services instead of for money.