Let’s examine both statements:

Statement A : "A portfolio manager is able to produce positive Beta as the markets are INEFFICIENT"

This is incorrect as - Beta is a measure of systematic risk, not performance or skill. A stock or portfolio can have positive Beta regardless of market efficiency. The ability to generate positive Alpha, not Beta, is what’s linked to inefficiencies.

Statement B : "A portfolio manager is able to produce positive Alpha as the markets are EFFICIENT"

This is incorrect as - In an efficient market, all available information is already reflected in prices. So, consistently generating positive Alpha is unlikely. Alpha represents returns above the risk-adjusted market return, which should not be consistently achievable in an efficient market.

Whenever a portfolio manager diversifies her investment to different countries, the first thing she considers is how businesses operate in that particular country, what is the risk in investing in that country.

Political and economic stability of a country, the evolved judicial systems which enforces contract in true manner, better liquidity & low transaction costs, good sovereign credit rating etc. will be preferred by international investors.

The monthly fact sheet is a concise document with all information related to fund/scheme. Monthly fact sheet is extensively used by investors, fund distributors, fund rating agencies, research analysts, media and others to access information about the various schemes of the mutual fund.

While it is not a regulatory requirement to publish the monthly fact sheet, it is a market practice followed by all the fund houses, on a voluntary basis.

Close-ended funds have a fixed maturity. Investors can buy units of a close-ended scheme, from the fund, only during its NFO. The investors cannot transact with the fund after the NFO is over. At the end of the maturity period, the scheme is wound up, units are cancelled and the money is returned to the investors.

(The fund makes arrangements for providing liquidity, post-NFO through listing of the units on a stock exchange. Such listing is compulsory for close ended schemes to provide liquidity to the investors).

Complete diversification means the elimination of all the unsystematic or unique risk (Company or sector specific risk). Once all unsystematic risk is eliminated, only systematic risk is left in the portfolio.

Expected Return from the portfolio = 0.25 x 0.12 + 0.05 x 0.1 x 0.25 x 0.16

= 0.03 + 0.05 + 0.04 = 0.12 

= 0.12 x 100 = 12%

In 1970 Eugene Fama, formalized the efficient markets theory and organized the empirical evidences. Fama presented the efficient market hypothesis in terms of a fair game model stating that in an efficient market, investors can be confident that the current market price fully reflects all available information about a security.

Fama divided the overall efficient market hypothesis (EMH) and the empirical tests of the hypothesis into three sub hypotheses depending on the information set involved: weak-form EMH; semi strong-form EMH and strong-form EMH.

Open ended schemes allow continous sale / purchase of units and investors can enter and exit the scheme at any time. Such scheme do not have any time frame.

Close ended schemes have a time frame which is announced when the scheme is launched.

Interval funds combine features of both open-ended and close-ended schemes. They are largely close-ended but become open-ended at pre-specified intervals.

The factor of Value can be measured by : Price to Earnings ratio , Price to Book Ratio , Price to Sales Ratio , Dividend Yield etc.

In a Callable bond, the issuer ie. who has issued the secutities/bonds  has the right to prepay the bond on specified dates before maturity.

This generally happens when interest rates fall in the economy. The issuer will prepay the money to investors and than can issue new bonds at a lower interest rate and thus save on interest costs.