April 07 q2

Discussion in 'SP5' started by NeedToQualify, Sep 17, 2008.

  1. NeedToQualify

    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
     
    NeedToQualify, Sep 17, 2008
    #1
  2. Davee

    Davee Member

    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.
     
    Davee, Sep 22, 2008
    #2

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