CFA Practice Question

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CFA Practice Question

Assuming efficient markets and a lack of access to superior analysts, which of the following is the least important activity in managing portfolios?
A. Minimizing total transaction costs
B. Diversifying completely on a global basis
C. Paying close attention to the monetary policy environment
Explanation: In efficient markets and without access to superior analysts, portfolio management calls for minimizing transaction costs and diversifying completely on a global basis. Paying attention to the monetary policy and evaluating its implications for portfolio management is appropriate for portfolio managers with access to superior analysts.

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