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Which of the following statements is wrong with respect to portfolio analysis?
  • a)
    It is a disciplined way of thinking about asset allocation
  • b)
    Portfolio analysis can act as a substitute to professional judgment
  • c)
    Portfolio analysis shortens the gap between strategy formulation and strategy implementation.
  • d)
    It analyzes the products and services that make up an association's business portfolio
Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements is wrong with respect to portfolio a...
Portfolio:
  • A portfolio’s meaning can be defined as a collection of financial assets and investment tools that are held by an individual, a financial institution, or an investment firm. 
  • The said collection of financial assets may also be valuables ranging from gold, stocks, funds, derivatives, property, cash equivalents, bonds, etc
Portfolio Analysis:
  • Portfolio Analysis is one of the areas of investment management that enable market participants to analyze and assess the performance of a portfolio (equities, bonds, alternative investments, etc.), intending to measure performance on a relative and absolute basis along with its associated risks.
  • Portfolio analysis is the process of studying an investment portfolio to see whether it meets a given investor's needs, preferences, and resources.
  • It also measures how likely it is to meet the goals and objectives of a given investment mandate.
  • This is done on a risk-adjusted basis, looking at factors such as how the asset class performed in the past, as well as inflation.
  • It is only a subjective tool, however, and is not a substitute for the ultimate professional judgment of the responsible decision-makers.
Hence, the correct answer is that portfolio analysis can substitute professional judgment.
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Which of the following statements is wrong with respect to portfolio a...
Portfolio analysis is a strategic decision-making tool used by organizations to assess and evaluate their existing portfolio of products, services, or investments. It involves analyzing the performance and potential of individual assets or investments and making decisions based on this analysis. It helps organizations to make informed decisions about resource allocation, risk management, and future investments.

Statement: Portfolio analysis can act as a substitute to professional judgment.

Explanation:
Portfolio analysis is a valuable tool that provides organizations with insights into their portfolio's performance and potential. However, it cannot act as a substitute for professional judgment. Here's why:

1. Qualitative factors: Portfolio analysis primarily focuses on quantitative measures such as financial performance, risk, and return. It may overlook qualitative factors such as market trends, customer preferences, and competitive dynamics. Professional judgment takes into account both quantitative and qualitative factors to make well-rounded decisions.

2. Subjectivity: Portfolio analysis relies on historical data, statistical models, and assumptions about future market conditions. While it provides a systematic and structured approach, it may not capture the full complexity of the decision-making process. Professional judgment considers the unique circumstances, context, and nuances of each situation, which cannot be fully captured by analysis alone.

3. Dynamic nature: Portfolio analysis is based on a snapshot of the current portfolio. However, portfolios are dynamic and constantly evolving. New opportunities, market disruptions, and changing customer preferences require ongoing evaluation and adjustments. Professional judgment provides the flexibility and adaptability needed to address these dynamic changes.

4. Contextual knowledge: Professionals bring valuable contextual knowledge and expertise to the decision-making process. They understand the organization's goals, strategies, and industry dynamics. This contextual knowledge allows them to make informed judgments that align with the organization's overall objectives.

In conclusion, while portfolio analysis is a useful tool for decision-making, it cannot replace professional judgment. Professional judgment incorporates both quantitative and qualitative factors, considers the dynamic nature of portfolios, and leverages contextual knowledge to make well-informed decisions. Organizations should use portfolio analysis as a complement to professional judgment rather than a substitute.
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Directions: Read the given passage carefully and answer the following question:Heritage conservation practices improved worldwide after the International Centre for the Study of the Preservation and Restoration of Cultural Property (ICCROM) was established with UNESCO’s assistance in 1959. The inter-governmental organisation with 126 member states has done a commendable job by training more than 4,000 professionals, providing practice standards, and sharing technical expertise. In this golden jubilee year, as we acknowledge its key role in global conservation, an assessment of international practices would be meaningful to the Indian conservation movement. Consistent investment, rigorous attention, and dedicated research and dissemination are some of the positive lessons to imbibe. Countries such as Italy have demonstrated that prioritising heritage with significant budget provision pays. On the other hand, India, which is no less endowed in terms of cultural capital, has a long way to go. Surveys indicate that in addition to the 6,600 protected monuments, there are over 60,000 equally valuable heritage structures that await attention. Besides the small group in the service of Archaeological Survey of India, there are only about 150 trained conservation professionals. In order to overcome this severe shortage, the emphasis has been on setting up dedicated labs and training institutions. It would make much better sense for conservation to be made part of mainstream research and engineering institutes, as has been done in Europe.Increasing funding and building institutions are the relatively easy part. The real challenge is to redefine international approaches to address local contexts. Conservation cannot limit itself to enhancing the art-historical value of the heritage structures, which international charters perhaps overemphasise. The effort has to be broad-based: It must also serve as a means to improving the quality of life in the area where the heritage structures are located. The first task, therefore, is to integrate conservation efforts with sound development plans that take care of people living in the heritage vicinity. Unlike in western countries, many traditional building crafts survive in India, and conservation practices offer an avenue to support them. This has been acknowledged by the Indian National Trust for Art and Cultural Heritage charter for conservation but is yet to receive substantial state support. More strength for heritage conservation can be mobilised by aligning it with the green building movement. Heritage structures are essentially eco-friendly and conservation could become a vital part of the sustainable building practices campaign in future.Q.Which of the following statements best describe(s) the major challenge faced in the implementation of international conservation policies?

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Which of the following statements is wrong with respect to portfolio analysis?a)It is a disciplined way of thinking about asset allocationb)Portfolio analysis can act as a substitute to professional judgmentc)Portfolio analysis shortens the gap between strategy formulation and strategy implementation.d)It analyzes the products and services that make up an associations business portfolioCorrect answer is option 'B'. Can you explain this answer?
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Which of the following statements is wrong with respect to portfolio analysis?a)It is a disciplined way of thinking about asset allocationb)Portfolio analysis can act as a substitute to professional judgmentc)Portfolio analysis shortens the gap between strategy formulation and strategy implementation.d)It analyzes the products and services that make up an associations business portfolioCorrect answer is option 'B'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Which of the following statements is wrong with respect to portfolio analysis?a)It is a disciplined way of thinking about asset allocationb)Portfolio analysis can act as a substitute to professional judgmentc)Portfolio analysis shortens the gap between strategy formulation and strategy implementation.d)It analyzes the products and services that make up an associations business portfolioCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is wrong with respect to portfolio analysis?a)It is a disciplined way of thinking about asset allocationb)Portfolio analysis can act as a substitute to professional judgmentc)Portfolio analysis shortens the gap between strategy formulation and strategy implementation.d)It analyzes the products and services that make up an associations business portfolioCorrect answer is option 'B'. Can you explain this answer?.
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