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Basic Question 11 of 11

Consider the following benchmark and managed portfolio.

What is the value added from the asset allocation decision?

A. 0.45%
B. 2.00%
C. 2.45%
Check Answer Previous Q Print

User Contributed Comments 1

User Comment
evanfitz Therefore, the value added from the security selection is 2.00%, since the total active return exceeded the benchmark return by 2.45%.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe how value added by active management is measured;

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