Portfolio "optimizers" tend to
A) provide low turnover portfolios.
B) ignore modern Portfolio Theory.
C) ignore transaction costs.
D) rely on qualitative judgment.

Question

Quizplus · Accepted Answer

Portfolio "optimizers" often ignore transaction costs when constructing portfolios, focusing instead on the mathematical optimization based on historical data and projections. This can lead to recommendations that might not fully account for the impact of transaction costs on portfolio performance.

Portfolio "Optimizers" Tend to