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Basic Question 7 of 7

You are considering three active managers. Here are forward-looking expectations:

Assume active returns are uncorrelated over time and all active management decisions can be fully implemented. Which manager should you choose?

A. Manager A
B. Manager B
C. Manager C

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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

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.