Question

11. In an efficient market, the consistently weak performance of a portfolio will be due to:
a) consistently making poor choice of actions
b) expenses incurred in portfolio management
c) choose good deeds erratically
(d) none of the above

13. ___________ is not a derivative value.
a) An ordinary share
b) An option
c) A future contract
d) A & B are derivative.

Answer 1

Question 11

In an efficient market, the consistently weak performance of a portfolio will be due to

Answer

b) expenses incurred in portfolio management

Portfolio management expenses are the main reason that the portfolio constently showing a weak performance in the efficient market.

Question 13

___________ is not a derivative value.

Answer

a) An ordinary share

A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets a benchmark. The derivative itself is a contract between two or more parties. An ordinary share is not a derivative but future and options are derivative.

ThankYou.....