Answer :
When assessing the performance of actively managed portfolios, it is crucial to keep track of portfolio composition and changes in portfolio mean and risk .The correct statement from the options given is b.
This statement is correct because when evaluating actively managed portfolios, it is important to consider various factors such as the composition of the portfolio and any changes that occur in the portfolio's mean and risk.
The composition of a portfolio refers to the specific investments or assets held within it. By keeping track of the portfolio's composition, investors can understand how different securities or assets contribute to the overall performance of the portfolio. Changes in the composition can impact the portfolio's risk and potential returns.
Additionally, monitoring changes in the portfolio's mean and risk is essential for assessing performance. The mean, or average, represents the expected return of the portfolio, while risk measures the variability or uncertainty of those returns. Tracking changes in these measures allows investors to evaluate how the portfolio is performing over time and make informed decisions regarding its management.
Therefore, the correct answer is option b.
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