- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 40. Using Multifactor Models
- Subject 3. Multifactor Models: Selected Applications
CFA Practice Question
In 2014, your portfolio achieved a mean return of 8% while the benchmark portfolio earned a mean return of 6%. Your portfolio's tracking error was 10%. The information ratio for your portfolio in 2014 was ______.
B. 0.6
C. 0.8
A. 0.2
B. 0.6
C. 0.8
Correct Answer: A
(8%-6%)/10% = 0.2
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