Probably the biggest problem with evaluating portfolio performance of actively managed funds is the assumption that __________________________.
A) the markets are efficient
B) portfolio risk is constant over time
C) diversification pays off
D) security selection is more valuable than asset allocation

Question

Quizplus · Accepted Answer

The assumption that portfolio risk is constant over time is problematic because actively managed funds often change their risk levels, making it difficult to accurately evaluate their performance.

Probably the Biggest Problem with Evaluating Portfolio Performance of Actively