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Basic Question 12 of 14
In 2014, your portfolio achieved a mean return of 8% while the benchmark portfolio earned a mean return of 6%. Your portfolio's tracking error was 10%. The information ratio for your portfolio in 2014 was ______.
B. 0.6
C. 0.8
A. 0.2
B. 0.6
C. 0.8
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.