CFA Practice Question
A portfolio manager without superior analysts should not attempt to ______
A. minimize total transaction costs.
B. select stocks using fundamental analysis.
C. divide a portfolio between risk-free assets and a completely diversified portfolio.
Explanation: The EMH implies that success with fundamental analysis requires superior analysts who can understand relevant variables affecting rates of return and do a superior job of estimating the movements of these variables.
User Contributed Comments 8
| User | Comment |
|---|---|
| Rguerra | "superior analysts" is a little qualitative, don´t you think? I heard somewhere that a superior analyst is someone who passes the Level II CFA exam and manage to get a 75% on the second mock exam of AnalystsNotes... |
| julamo | not quite there yet! |
| Lucho | Guerra your comment is very subjective, you can not be superior without relevant experience.. passing any exam does not guarantee anything, no even a good job... |
| chingg2 | i think he was being sarcastic... |
| makatang | sarcasm! |
| Insipidity | Sarcasm is hard to detect on the Internet :) |
| dipu617 | Thats not true... if you have come this far with all those text books, notes, related materials and mock tests.... sarcasm is really easy to detect.... ;-) |
| pigletin | i just want to be a good analyst, that's it |