Superior portfolio performance can result:
A) from only the selection of undervalued securities.
B) from only the superior ability to time market turns.
C) from either the superior selectivity or timing performance.
D) neither from superior selection nor timing as the market is too efficient.

Question

Quizplus · Accepted Answer

Superior portfolio performance can result from either the ability to select undervalued securities (superior selectivity) or the ability to accurately time market turns (timing performance). Both skills can lead to outperforming the market average, depending on the effectiveness of the strategy and market conditions.

Superior Portfolio Performance Can Result