Which statement regarding a portfolio is CORRECT? Multiple Choice O Investors are always looking to find portfolios with negative alphas, since they are undervalued. As the information ratio is getting closer to zero, alpha is becoming less reliable. O Sharpe ratio is using systematic risk for the performance measurement. Alpha is a more accurate performance indicator than the information ratio. Sharpe, Treynor, and Jensen are all using reward to risk ratio to measure the performance.

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.