CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

A portfolio manager who does not have access to superior analysts should focus on ______.
A. stocks with a low book-value to market-value ratio
B. exploiting known market anomalies such as calendar effects
C. minimizing turnover, transactions costs, and taxes, and maintaining a specified risk level
Explanation: In this case the portfolio manager must invest as if the markets were efficient. Thus, diversification, cost control, and tax management are the guiding principles.

User Contributed Comments 2

User Comment
murli Portfolio managers duty without Analyst!
rocyang most of them suck
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