2025 CFA Level II Exam: Topic 9. Portfolio Management - Learning Module 38. Analysis of Active Portfolio Management

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

	1. Active Management and Value Added describe how value added by active management is measured;
	2. Comparing Risk and Return calculate and interpret the information ratio (ex post and ex ante) and contrast it to the Sharpe ratio;
	3. The Fundamental Law of Active Management describe and interpret the fundamental law of active portfolio management including its component terms - transfer coefficient, information coefficient, breadth, and active risk (aggressiveness);
	4. Applications of the Fundamental Law 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;
	5. Practical Limitations describe the practical strengths and limitations of the fundamental law of active management.

Thanks again for your wonderful site ... it definitely made the difference.

No flashcard found. Add a private flashcard for the module.