The best way to measure adherence to the objectives of money managers and the financial needs of investors is:
A)to calculate the total returns on the portfolios that they manage.
B)to evaluate the risk exposure that the fund manager has accepted.
C)to calculate the dividend income that the portfolio has achieved.
D)to calculate the capital gains that the portfolio has achieveD.

Question

Quizplus · Accepted Answer

The objectives should be set with an eye toward the capabilities of the money managers and the financial needs of the investors. The best way to measure adherence to these objectives is to evaluate the risk exposure the fund manager has accepted.

The Best Way to Measure Adherence to the Objectives of Money