GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Chapter 26, Problem 3PS
Summary Introduction
To select:
The reasons for difficulty in assessing the performance of a hedge fund manager than a typical mutual fund manager.
Introduction:
There are two types of fund managers, one is traditional and other is non-traditional. In this case, a mutual fund is a traditional fund manager and the hedge fund is a non-traditional fund manager. Management of assets, investor's fees and mutual fund strategy are the reasons for differences.
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What are the consequences of using a poor benchmark toevaluate a fund manager?
An investor who uses only the Treynor ratio to evaluate the performance of a mutual fund is most likely to conclude:
a. Total risk is more important than systematic risk
b. The fund is not well-diversified.
c. A measure of market portfolio performance is essential to evaluate the fund
d. The beta of the fund captures the relevant risk of the fund.
What's the difference between the two analysis approach used by a portfolio manager in determining the fund allocation for a client portfolio?
Chapter 26 Solutions
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
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