CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Which statement is false?
A. Value added is a relative performance comparison to investing in a market portfolio.
B. The fundamental law of active management implies that, given some skill and the assumption of independent and uncorrelated active returns, an active manager should bet as often as possible.
C. The active risk of a market index fund is typically very low.
Explanation: A is false. The benchmark portfolio is not necessarily the market portfolio.

C: A market index fund's performance should be similar to that of a benchmark'?s.

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