CFA Practice Question

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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?

A. 5.2%
B. 5.4%
C. 6.0%
Correct Answer: C

active weight + benchmark weight = 5.6% + 0.4% = 6%

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