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Not sure how to tackle this one, please help. Thank you. The finance committee of an endowment has decided to shift part of its investment
Not sure how to tackle this one, please help. Thank you.
The finance committee of an endowment has decided to shift part of its investment in an index fund to one of two professionally-managed portfolios. Upon examination of past performance, a committee member proposes to choose the portfolio that achieved a greater alpha value. Do you agree? Why or why not? Could a positive alpha be associated with inferior performance? ExplainStep by Step Solution
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