A leading investment firm has issued new rules that prevent its portfolio managers from short selling stock for their clients. One portfolio managers has concluded that this restriction prevents portfolio managers from providing above-average investment returns for their corporate clients.
Which of the following is an assumption that would allow the portfolio manager's conclusion to be properly drawn ?
A) Investment firm should not restrict the ways in which portfolio managers manage their client's funds.
B) Portfolio managers can provide above-average returns for their clients only by short selling stocks.
C) Short selling is a technique used primarily for corporate clients.
D) Portfolio managers often used short selling techniques to provide above-average returns for corporate clients.
E) Before the investment firm issued the new rules, portfolio managers were not permitted to short sell stocks.
OA D
Can you please explain why not B
Which of the following is an assumption that would allow the portfolio manager's conclusion to be properly drawn ?
A) Investment firm should not restrict the ways in which portfolio managers manage their client's funds.
B) Portfolio managers can provide above-average returns for their clients only by short selling stocks.
C) Short selling is a technique used primarily for corporate clients.
D) Portfolio managers often used short selling techniques to provide above-average returns for corporate clients.
E) Before the investment firm issued the new rules, portfolio managers were not permitted to short sell stocks.
OA D
Can you please explain why not B
