单选题 Under the Efficient Market Hypothesis (EMH), the major effort of the portfolio manager should be to: A. minimize systematic risk in the portfolio. B. stay the course by following a strict buy and hold strategy. C. achieve complete diversification of the portfolio.

【正确答案】 C

【答案解析】In an efficient market, portfolio managers must create and maintain the appropriate mix of assets to meet their client' s needs. The portfolio should be diversified to eliminate unsystematic risk. The appropriate systematic risk will depend on the clients risk tolerance and return requirement. Over time the needs of the client and environment will justify changes to the portfolio. The manager should also try to minimize transaction costs and at least try to match the performance of a benchmark.