The prudent investor rule requires

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Reference no: EM131563489

a. The prudent investor rule requires __________.

A) executives of companies to avoid investing in options of companies they work for

B) executives of companies to disclose their transactions in stocks of companies they work for

C) professional investors who manage money for others to avoid all risky investments

D) professional investors who manage money for others to constrain their investments to those that would be approved by a prudent investor

b. Major functions of the investment committee include all but which one of the following?

A) Engage in security selection for each portfolio managed

B) Broadly determine the overall asset allocation of the investment company C) Determine the asset-class weights for each portfolio

D) Determine the asset universe

c. A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager changes the weights periodically according to forecasts for each sector. This is an example of __________.

A) a passively managed core with an actively managed component B) a totally passively managed fund

C) passive asset allocation with active security selection

D) active asset allocation with passive security selection

Reference no: EM131563489

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