- 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
You are considering three active managers. Here are forward-looking expectations:
B. Manager B
C. Manager C
Assume active returns are uncorrelated over time and all active management decisions can be fully implemented. Which manager should you choose?
A. Manager A
B. Manager B
C. Manager C
Correct Answer: C
Given the assumptions, the breadth of Manager C is the highest, resulting in the highest information ratio.
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