- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 38. Analysis of Active Portfolio Management
- Subject 3. The Fundamental Law of Active Management
CFA Practice Question
The information coefficient measures the correlation between the ______ and the ______.
II. realized active returns
III. forecasted active returns
I. active weights
II. realized active returns
III. forecasted active returns
Correct Answer: II and III
Investors with higher information coefficients will add more value over time.
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