In general, the best portfolio managers are those who earn the highest returns.

Question

Quizplus · Accepted Answer

Adherence to objectives, as measured by risk exposure, is important in evaluating a fund manager because risk is one of the variables a money manager can directly control. While short-run return performance can be greatly influenced by unpredictable changes in the economy, the fund manager has almost total control in setting the risk level. He can be held accountable for doing what was specified or promised in regard to risk.

In General, the Best Portfolio Managers Are Those Who Earn