which of the following statements about portfolio strategy course hero

by Ms. Kara Schmidt V 3 min read

Which portfolio has lower risk than the passive benchmark?

c. An actively managed equity portfolio has lower risk than the passive benchmark.

What is active equity portfolio management?

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.

Can investment manager style be used as a basis for measuring the manager's performance relative to a benchmark?

b. An investment manager's style cannot be used as a basis for measuring the manager's performance relative to a benchmark.

Is return volatility correlated with benchmark portfolio?

e. The return volatility of the managed portfolio is not correlated with the return volatility of the benchmark portfolio.

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