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Which of the Following Statements Is FALSE

Question 45

Multiple Choice

Which of the following statements is FALSE?


A) A manager's choice to align with an investment style communicates information to clients about the investor's focus, area of expertise, and stock evaluation methods.
B) An investment manager's style cannot be used as a basis for measuring the manager's performance relative to a benchmark.
C) Style identification allows an investor to select investment managers that allow his overall portfolio to be properly diversified.
D) Style investing allows control of the total portfolio to be shared between the investment managers and a knowledgeable sponsor.
E) An investor needs to be cautious about a manager whose portfolio exhibits unintentional style drift.

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