Traditional portfolio management
A) concentrates on only the most recent "hot" sectors of the market.
B) typically centers on interindustry diversification.
C) includes only diversified bonds in a laddered portfolio.
D) is based on statistical measures to develop the portfolio plan.

Question

Quizplus · Accepted Answer

Traditional portfolio management typically centers on interindustry diversification, meaning it includes a mix of assets from various industries to reduce overall risk. It is not solely focused on the most recent "hot" sectors of the market, does not necessarily include only diversified bonds in a laddered portfolio, and while statistical measures may be used to develop the portfolio plan, it is not the basis for traditional portfolio management.

Traditional Portfolio Management