Which equity strategy is focused on beating a benchmark? Passive Active absolute return Active relative return. What are time horizon and liquidity? Elements of investment process Constraints on portfolios Steps in portfolio management What is a call option? What is a call option? A forward contract that is standardized and exchange-traded. An option to sell an asset at a particular price. An option to buy an asset at a particular price. Determining the number of stocks in a portfolio, portfolio turnover, weight of top 10 securities, and maximum single stock exposure are all part of: Portfolio construction. Buy discipline. Investment philosophy. A benefit of alternative investments for investors is: Historically low correlations of returns vs traditional investments. Easier to understand than traditional investments. Less regulation and transparency than traditional investments