In an efficient market and for an investor that believes in a passive approach to investing,what is the primary duty of a portfolio manager?
A) Accounting for results
B) Diversification
C) Identifying undervalued stocks
D) No need for a portfolio manager

Question

Quizplus · Accepted Answer

In an efficient market, prices reflect all available information, making it difficult to consistently identify undervalued stocks. A passive investor's primary focus is diversification to minimize risk and achieve market returns.

In an Efficient Market and for an Investor That Believes