Question: We evaluate the selection ability and the market timing ability of active portfolio managers using the scatter plot of the excess return of the portfolio
We evaluate the selection ability and the market timing ability of active portfolio managers using the scatter plot of the excess return of the portfolio against the excess return of the market portfolio. The intercept of the curve measures the selection ability of active portfolio managers and the slope of the curve measures the market timing ability of active portfolio managers. Is the above statement true or false?
A. True B. False
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