c. An actively managed equity portfolio has lower risk than the passive benchmark.
The goal of active equity portfolio management is to earn a portfolio return that exceeds the return of a passive benchmark portfolio (net of transaction costs) on a risk-adjusted basis.
b. An investment manager's style cannot be used as a basis for measuring the manager's performance relative to a benchmark.
e. The return volatility of the managed portfolio is not correlated with the return volatility of the benchmark portfolio.