- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 38. Analysis of Active Portfolio Management
- Subject 4. Applications of the Fundamental Law
CFA Practice Question
In the "Global Equity Strategy" example, the transfer coefficient, information coefficient, and breadth are assumed to be 0.982, 0.1, and 27.0, respectively. For Belgium, the active weight and ACWI benchmark weight are 5.6% and 0.4%, respectively. What is the country's portfolio weight?
B. 5.4%
C. 6.0%
A. 5.2%
B. 5.4%
C. 6.0%
Correct Answer: C
active weight + benchmark weight = 5.6% + 0.4% = 6%
User Contributed Comments 0
You need to log in first to add your comment.