Selectivity measures how well a portfolio performed relative to a
A) market portfolio (S&P 400).
B) portfolio of the same securities in the previous period.
C) naively selected portfolio of equal risk.
D) naively selected portfolio of equal return.
E) world market portfolio.

Question

Quizplus · Accepted Answer

Selectivity measures how well a portfolio performed relative to a naively selected portfolio of equal risk, as it assesses the manager's ability to select securities that outperform a benchmark with the same level of risk.

Selectivity Measures How Well a Portfolio Performed Relative to a