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Basic Question 4 of 7

Here is the information about the Long-Short Global Equity Fund:

If the active risk were doubled to 4%, the information ratio would be ______.

A. doubled
B. halved
C. the same

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain how the information ratio may be useful in investment manager selection and choosing the level of active portfolio risk;

compare active management strategies, including market timing and security selection, and evaluate strategy changes in terms of the fundamental law of active management;

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