- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 38. Analysis of Active Portfolio Management
- Subject 1. Active Management and Value Added
CFA Practice Question
The sum of ______ is always zero.
B. active weights
C. active security returns
A. active portfolio returns
B. active weights
C. active security returns
Correct Answer: B
Individual assets can be overweighted (have positive active weights) or underweighted (have negative active weights), but the complete set of active weights sums to zero.
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