Asked by
Katrina Tanona
on Nov 04, 2024
Verified
Benchmark risk is defined as
A) the return difference between the portfolio and the benchmark.
B) the standard deviation of the return of the benchmark portfolio.
C) the standard deviation of the return difference between the portfolio and the benchmark.
D) the standard deviation of the return of the actively-managed portfolio.
Benchmark Risk
The risk that a portfolio's performance deviates from its benchmark index.
Portfolio Difference
The distinct variations and diversifications in an investment portfolio that aim at minimizing risk and maximizing returns.
- Comprehend the basic principles of portfolio management, focusing on the significance of beta, standard deviation, and nonsystematic variance.
Verified Answer
MA
Learning Objectives
- Comprehend the basic principles of portfolio management, focusing on the significance of beta, standard deviation, and nonsystematic variance.
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