Professional money managers may be evaluated based on

Question

Quizplus · Accepted Answer

All of the above are important factors in evaluating the performance of professional money managers. Adherence to stated objectives ensures that the manager is following the agreed-upon investment strategy. Efficient diversification helps to manage risk and optimize returns. Return relative to degree of risk is a key measure of a manager's ability to generate returns without taking on excessive risk. Therefore, all three factors should be considered when evaluating professional money managers.

Professional Money Managers May Be Evaluated Based on