Which of the following statements does NOT describe the role of a portfolio manager in perfectly efficient markets Portfolio managers should:（）
A: construct diversified portfolios that include international securities to eliminate unsystematic risk.
B: quantify client’s risk tolerance, communicate portfolio policies and strategies, and maintain a strict buy and hold policy avoiding any changes in the portfolio to minimize transaction costs.
C: help clients minimize taxes and reduce trading turnover.
A: construct diversified portfolios that include international securities to eliminate unsystematic risk.
B: quantify client’s risk tolerance, communicate portfolio policies and strategies, and maintain a strict buy and hold policy avoiding any changes in the portfolio to minimize transaction costs.
C: help clients minimize taxes and reduce trading turnover.
举一反三
- Which of the following statements about the market portfolio and the capital market line (CML) is least accurate The market portfolio:（） A: assumes an equal amount is invested in each risky asset. B: is perfectly positively correlated with other portfolios on the CML. C: allows the elimination of all unsystematic risk at every point along the CML.
- Which of the following risks can be diversified through portfolio investment? _____. A: Interest rate risk B: Inflation risk C: Market risk D: Default risk
- Portfolio is a effective approach to reduce investment risk
- If the daily, 90% confidence level, VaR of a portfolio is estimated to be $4,000, the risk manager would expect that in one out of:（ ） A: 10 days, the portfolio value will decline by $4,000 or less B: 90 days, the portfolio value will decline by $4,000 or less C: 10 days, the portfolio value will decline by $4,000 or more
- Risks that can be avoided through the portfolio include ( ) . A: Corporate credit risk B: Market price risk C: Corporate control of people's moral hazard D: Market liquidity risk as a whole E: Risk of contagion from external crises F: Risk of monetary policy adjustment