A portfolio manager without superior analytical skills should
A) determine and quantify the risk preferences of a client.
B) minimize transaction costs.
C) maintain the specified risk level.
D) ensure that the portfolio is completely diversified.
E) All of these are correct.

Question

Quizplus · Accepted Answer

All of these choices are important responsibilities of a portfolio manager, but without superior analytical skills, they may not be able to effectively execute them. For example, without strong analytical skills, a portfolio manager may struggle to accurately assess and quantify the risk preferences of a client, or to effectively manage and maintain a diversified portfolio. Therefore, while all of these choices are important, they rely on the foundation of strong analytical abilities.

A Portfolio Manager Without Superior Analytical Skills Should