CFA Practice Question

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
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