Asked by
debbie macnabb
on Nov 04, 2024
Verified
The critical variable in the determination of the success of the active portfolio is
A) alpha/systematic risk.
B) alpha/nonsystematic risk.
C) gamma/systematic risk.
D) gamma/nonsystematic risk.
Active Portfolio
An investment portfolio actively managed by a portfolio manager or investor aiming to outperform a benchmark index through regular buying and selling of securities.
Systematic Risk
This refers to the inherent risk that affects the entire financial market or a whole market segment, unpreventable through diversification.
- Acquire knowledge about the core ideas of portfolio management, especially regarding the functions of beta, standard deviation, and nonsystematic variance.
- Master the composition and operational contexts of the Treynor-Black model.
Verified Answer
VP
Learning Objectives
- Acquire knowledge about the core ideas of portfolio management, especially regarding the functions of beta, standard deviation, and nonsystematic variance.
- Master the composition and operational contexts of the Treynor-Black model.