Even if the markets are efficient, professional portfolio management is still important because it provides investors with ________.
I. low cost diversification
II. a portfolio with a specified risk level
III. better risk-adjusted returns than an index
A)I only
B)I and II only
C)II and III only
D)I, II and III

Question

Quizplus · Accepted Answer

Professional portfolio management is important for providing low-cost diversification and creating a portfolio with a specified risk level, even in efficient markets. However, it does not guarantee better risk-adjusted returns than an index.

Even If the Markets Are Efficient, Professional Portfolio Management Is