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April 07 q2

N

NeedToQualify

Member
Hi

I don't see why the answer calculates the net position of each investor relative to the market. If for example an investor invests 70% in growth stocks and 30% in value stocks, shouldn't the portfolio be growth biased irrespectively of the weights of these stocks in the market?

Thanks
 
If the market has 70% growth stocks and 30% value stocks aswell then you could argue the investor is not a growth investor but merely matching the market. ie passive.
 
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