Professional money managers may be evaluated based on:
A)their adherence to stated objectives.
B)their ability to efficiently diversify the portfolio.
C)their return, relative to degree of risk.
D)All of the above

Question

Quizplus · Accepted Answer

All of the options listed are common ways to evaluate a professional money manager's performance. Adherence to stated objectives ensures that the manager is staying true to the stated investment strategy, while efficient diversification helps to minimize risk. Ultimately, the manager's return relative to the degree of risk taken is the key measure of success.

Professional Money Managers May Be Evaluated Based On