Asset managers typically lose their jobs because of poorly allocated portfolios under a given market condition.

Question

Quizplus · Accepted Answer

Asset managers are hired to manage portfolios in a way that maximizes returns while minimizing risk. If they make poor allocation decisions, such as investing too heavily in a sector that performs poorly, they can underperform the market and potentially cause losses for their clients. This can lead to them losing their jobs.

Asset Managers Typically Lose Their Jobs Because of Poorly Allocated