In an Efficient Market and for an Investor Who Believes

question 31

Multiple Choice

In an efficient market and for an investor who believes in a passive approach to investing, what is the primary duty of a portfolio manager?

• A) accounting for results
• B) diversification
• C) identifying undervalued stocks
• D) no need for a portfolio manager

---

Definitions:

Cephalocaudal Development

A pattern of growth in which development occurs from the head downwards through the body to the feet.

Growing Spurts

Growth spurts are periods of rapid physical growth and development typically observed in children and adolescents.

Zygote

A new cell formed from the union of a sperm and an ovum (egg cell); a fertilized egg.

Neonate

A newborn baby, especially during the first few weeks after birth.