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Basic Question 5 of 7
The more constraints we impose in portfolio construction, the ______ the information ratio.
B. lower
C. same
A. higher
B. lower
C. same
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
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.