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Basic Question 5 of 11

Continue with the previous question. Consider the following benchmark and managed portfolio.

What is the value added for the managed portfolio?

A. 0.45%
B. 0.58%
C. 0.75%
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User Contributed Comments 1

User Comment
challenge11 Approach 3 correction: RA = 0.05 * (12%-9.3%) - 0.05 (3%-9.3%) = 0.45%
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe how value added by active management is measured;

CFA® 2025 Level II Curriculum, Volume 6, Module 38.