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Basic Question 2 of 2
If you note that your active manager is using the number of securities as the breadth and these securities are all in one industry, you can conclude that your active manager is overstating ______.
II. expected active returns
III. information coefficient
IV. information ratio
V. active risk
I. breadth
II. expected active returns
III. information coefficient
IV. information ratio
V. active risk
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe the practical strengths and limitations of the fundamental law of active management.
CFA® 2024 Level II Curriculum, Volume 6, Module 45.