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If an investment manager determines that the selection effect for a portfolio is 0 . 5 0 , what is the most reasonable conclusion? a

If an investment manager determines that the selection effect for a portfolio is 0.50, what is the most reasonable conclusion?
a.
The investment would have been safer using the benchmark.
b.
No security selection ability is present.
c.
Some security selection ability is present.
d.
Seventy-five percent of the fund was misallocated.

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