Which of the following statements concerning active equity portfolio management strategies is true?

Question

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The goal of active equity portfolio management is to earn a portfolio return that exceeds the return of a passive benchmark portfolio (net of transaction costs) on a risk-adjusted basis. Option A is incorrect because actively managed equity portfolios tend to have higher transaction costs due to their higher turnover. Option C is incorrect because actively managed equity portfolios tend to have higher risk due to their higher concentration and/or deviation from the benchmark. Option D is incorrect because excessive trading activity can lead to higher transaction costs and lower returns.

Which of the Following Statements Concerning Active Equity Portfolio Management