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A portfolio manager is currently analyzing the variability in returns across the accounts they manage. This variability, measured as the difference between the highest and lowest returns among these accounts, is influenced by several factors. The manager is also considering strategies to minimize this variability. Which of the following conclusions can be correctly drawn from this analysis?
A
Dual-benchmark optimization can reduce dispersion and help achieve higher average returns.
B
A portfolio manager's tracking error and dispersion tend to be proportional to each other over time.
C
Dispersion is always client-driven since it refers to the variance in the performances of client portfolios managed by the same manager.
D
Portfolio managers can control dispersion and should aim to reduce any existing dispersion to zero