Question
1. Active managers may generate active risk by: [SELECT ALL THAT APPLY] options: i.market timing ii.security selection iii.using leverage iv.matching the benchmark portfolio 2. The
1. Active managers may generate active risk by: [SELECT ALL THAT APPLY] options:
i.market timing
ii.security selection
iii.using leverage
iv.matching the benchmark portfolio
2. The limitations of using value at risk (VaR) include: [SELECT ALL THAT APPLY] options:
i.It applies to all assets.
ii.It is easy to understand.
iii.There are a variety of accepted methods with no clear best option to calculate.
iv.It is only as good as the assumptions used in calculating it.
3.The value of active management can be measured using: [SELECT ALL THAT APPLY]
i.Value at Risk
ii.benchmark portfolios
iii.multifactor models
iv.information ratios
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