Question

Four portfolio managers have generated superior performance against each of their benchmarks and the stock market in general. The manager least likely to replicate performance in the future is the one who:

Answer 1

d. Increases allocation to any stock that changes its corporate name

Step-by-step explanation:

This manager that does this practice is least likely to replicate performance because that is an unprofessional practice.

In most cases when there is a change in the name of a stock it indicates a red signal that the stock price is bad and thus the company may decide to change it's name, thus the future performance of the company diminishes.