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Basic Question 2 of 13

The base of the correlation triangle measures the ______ value added through active management.

A. expected
B. realized
C. absolute

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe and interpret the fundamental law of active portfolio management including its component terms - transfer coefficient, information coefficient, breadth, and active risk (aggressiveness);

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