an equty quiz additional, active

jbaldyga

what is one drawback of completeness portfolios?
A they seek to eliminate misfit risk
B they will add additional misfit risk
C they will add additional true active risk

Iginla2011

C

NO EXCUSES

liangfeng

Will be wrong on this one:

A

lcw77

gun to my head i choose C

mar350

B for the trifecta

Valores

A


One drawback of completeness portfolios is that they essentially seek to eliminate misfit risk. As stated above, a nonzero amount of misfit risk may be optimal. In seeking to eliminate misfit risk through a completeness fund, a fund sponsor may be giving up some of the value added from the stock selection of the active managers
(Level III Volume 4 Fixed Income and Equity Portfolio Management , 4th Edition. Pearson Learning Solutions p. 260).
<vbk:9780558655013#page(260)>

Analti_Calte

C

-- with elimination method.
one weakness a completeness fund is to reduce the total active return?



Edited 1 time(s). Last edit at Wednesday, May 18, 2011 at 10:46AM by deriv108.

bodhisattva

A, some misfit risk may be beneficial.

skycfa

bah humbug

thommo77

A, on the exam.