CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Based on the fundamental law of active management, if a portfolio manager has a transfer coefficient of 0.7, an information coefficient of 0.2, a breadth of 12, and an active risk 7%, what is the information ratio?
A. 0.49
B. 0.98
C. 1.68
Explanation: IR = IC x TC x BR1/2 = 0.2 x 0.7 x 121/2 = 0.49

User Contributed Comments 1

User Comment
jordy Why not x active risk ?
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