QUESTION 143

1. A portfolio manager compares her performance to that of the appropriate benchmark and concludes she has underperformed by 189 basis points. The manager subsequently decides to change her strategic allocation from 25% to 30% cyclical stocks. In which stage of the portfolio management process is she most likely operating?

   		a. Planning.
   		b. Execution.
   		c. Feedback.
   		d. Exit.

QUESTION 144

1. Which of the following is least likely to be included in the tax constraint for an individual investor?

   		a. The federal withholding tax from the individual's employment income.
   		b. The tax liability from a taxable lump sum received as part of an employment contract.
   		c. Property taxes to be paid during the upcoming year from ownership of a beach house.
   		d. Capital gains taxes owed on the sale of a watch worn by Benjamin Franklin.