- 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
Consider the following benchmark and managed portfolio.
B. 2.00%
C. 2.45%
A. 0.45%
B. 2.00%
C. 2.45%
Correct Answer: A
ΔwstocksRB, stocks + Δwbonds RB, bonds = (0.75 - 0.7) x 12% + (0.25 - 0.3) x 3% = 0.45%
User Contributed Comments 1
| User | Comment |
|---|---|
| evanfitz | Therefore, the value added from the security selection is 2.00%, since the total active return exceeded the benchmark return by 2.45%. |