A portfolio manager's ranking within a comparison universe may not provide a good measure of performance because
A)portfolio returns may not be calculated in the same way.
B)portfolio durations can vary across managers.
C)if managers follow a particular style or subgroup, portfolios may not be comparable.
D)portfolio durations can vary across managers and if managers follow a particular style or subgroup, portfolios may not be comparable.

Question

Quizplus · Accepted Answer

A portfolio manager's performance may not be accurately reflected by a ranking within a comparison universe due to differences in portfolio durations and styles/subgroups followed by managers. Therefore, answer D is the best choice as it encompasses both variations in portfolio durations and styles/subgroups.

A Portfolio Manager's Ranking Within a Comparison Universe May Not