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Some individuals contend that professional managers are incapable of continually outperforming the market. Others believe that the professional managers are able to continually outperform the

Some individuals contend that professional managers are incapable of continually outperforming the market. Others believe that the professional managers are able to continually outperform the market. What are the assumptions in support of passive portfolio management?

  • Diversificationchecked
  • Informational efficiencychecked
  • Market inefficiencyunchecked
  • Liquidity risks

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