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NEW QUESTION: 1
A. Option F
B. Option C
C. Option E
D. Option D
E. Option B
F. Option A
Answer: B,E,F
NEW QUESTION: 2
Indie Carson, management consultant, wants to become a portfolio manager. While researching the position, she learns that obtaining the CFA Charter is very important. She decides to take the Level 1 examination this June, and begins to study. During the reading on efficient markets, she rethinks her new career choice. If markets are efficient, what is the role of a portfolio manager? Distraught, she e-mails her mentor, LaMeda Durio. Durio wants to use the occasion to help Carson study, so she e-mails Carson the following reply (summarized in points A through D below) and asks her to identify the INCORRECT statement.
Which of the following choices does Carson select as FALSE? Assuming an efficient market, portfolio managers assist clients with:
A. rebalancing the portfolio when necessary.
B. diversifying globally to reduce systematic risk.
C. quantifying risk tolerances and return needs.
D. minimizing transaction costs.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
This a "trick" question. Although portfolio managers can help clients diversify globally, they do so to reduce unsystematic risk. Systematic, or market risk, is undiversifiable.
The other statements are true. There are three ways for a portfolio manager to minimize transaction costs:
reduce taxes, reduce trading volume (turnover) and minimize liquidity costs by trading relatively liquid stocks.
NEW QUESTION: 3
A)
B)
C)
D)
A. Exhibit B
B. Exhibit D
C. Exhibit C
D. Exhibit A
Answer: D
NEW QUESTION: 4
At what level do you maintain the purchasing group in the material master?
Please choose the correct answer.
Response:
A. Company code
B. Plant
C. Client
D. Purchasing organization
Answer: D
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