NO.PZ2019012201000058
问题如下：
Dewey and Sardar meet to discuss developing a fundamental active investment process for the Purity Fund. They start by defning the investment universe and market opportunity for the fund, and then they pre-screen the universe to obtain a manageable set of securities for further, more detailed analysis. Next, Dewey notes that industry and competitive analysis of the list of securities must be performed. He then asks Sardar to recommend the next step in development of the fundamental active management process. Sardar’s recommendation for the next step should be to:
选项：
A.review results from back-testing the strategy
make recommendations for rebalancing the portfolio
forecast companies’ performances and convert those forecasts into valuations
解释：
C is correct. The steps to developing a fundamental active investment processare as follows:
1 Defne the investment universe and the market opportunity—the perceived opportunity to earn a positive risk-adjusted return to active investing, net of costs—in accordance with the investment mandate. The market opportunity is also known as the investment thesis.
2 Prescreen the investment universe to obtain a manageable set of securities for further, more detailed analysis.
3 Understand the industry and business for this screened set by performing industry and competitive analysis and analyzing fnancial reports.
4 Forecast company performance, most commonly in terms of cash flows or earnings.
5 Convert forecasts to valuations and identify ex- ante proftable investments.
6 Construct a portfolio of these investments with the desired risk profle.
7 Rebalance the portfolio with buy and sell disciplines.
So, Sardar should recommend that the next step in the development of the fundamental active management process be forecasting companies’ performances and converting those forecasts into valuations
想问一下，这句话是什么意思，怎么理解？Next, Dewey notes that industry and competitive analysis of the list of securities must be performed.
