It is essential that both the client and the portfolio manager agree on an appropriate benchmark portfolio.

Question

Quizplus · Accepted Answer

It is critical for the client and portfolio manager to agree on a benchmark portfolio that aligns with the client's investment objectives, risk tolerance, and time horizon. This benchmark serves as a point of reference to evaluate the performance of the portfolio manager's investment strategy. Without agreement on a suitable benchmark, it becomes challenging to assess the effectiveness of the portfolio manager's approach.

It Is Essential That Both the Client and the Portfolio