Passive investing generally offers:

In Brinson attribution, the “allocation effect” measures:

Which is considered an implicit transaction cost?

Essay You are a newly hired junior portfolio manager, fresh out of graduate school with a specialization in finance. Minutes before a scheduled review, you learn the lead portfolio manager has been called away unexpectedly. You must conduct the meeting alone. During the session, the client studies the efficient-frontier chart that was prepared for the discussion. The client asks you the following: “On those efficient-frontier charts, what’s the difference between the global minimum-variance (GMV) portfolio and the portfolio that maximizes the Sharpe ratio, and why wouldn’t we always choose the Sharpe-maximizing one?” What is your response to the client?

Passive strategies tend to outperform active strategies most reliably when:

The primary purpose of using an equity index future in a portfolio is to:

Which of the following is NOT typically considered a factor in equity investing?

In a strategic asset allocation strategy, a 55 % equity target with a ±2 % band allows equity weights to fluctuate between:

The primary goal of an active equity manager is to:

Which of the following best defines passive equity investing?