A manager's superior returns could have occurred due to
A) an insightful asset allocation strategy that over weighted an asset class that earned high returns.
B) investing in undervalued sectors.
C) selecting individual securities that earned above average returns.
D) timing broad market movements.
E) All of these are correct.

Question

Quizplus · Accepted Answer

All of the given options could have contributed to the superior returns of the manager's portfolio. An insightful asset allocation strategy and investing in undervalued sectors could have led to outperformance of the portfolio compared to the benchmark. Additionally, selecting individual securities that earned above-average returns and timing broad market movements can also contribute to the superior performance of the portfolio. Therefore, all of these options are correct.

A Manager's Superior Returns Could Have Occurred Due to