疑问

问题如下：

Which of the following reasons would least support Manager 1’s suggested choice of investment vehicle for Wood Valley?

选项：

A.Lower costs B.Lower tracking risk C.Ability to customize the portfolio

解释：

Solution

C is correct. Manager 1 suggests a pooled vehicle. The ability to customize a portfolio is an advantage of an SMA, not a pooled vehicle. Therefore, that reason does not support the choice of a pooled vehicle.

A is incorrect. Manager 1 suggests the use of a pooled vehicle, which has lower cost compared to an SMA. For a university endowment, keeping costs low would be an advantage and therefore supports the choice of a pooled vehicle.

B is incorrect. Manager 1 suggests the use of a pooled vehicle, which has reduced tracking risk compared to an SMA, so that reason supports the choice of a pooled vehicle.