- CFA Exams
- CFA Level I Exam
- Study Session 17. Portfolio Management (2)
- Reading 47. Analysis of Active Portfolio Management
- Subject 2. Comparing Risk and Return
CFA Practice Question
The information ratio grows with a ______.
A. higher level of risk
B. higher level of manager's aggressiveness
C. longer time horizon
Explanation: The IR is independent of the manager's level of aggressiveness. It depends on the time horizon because both expected active return and risk grow with time.
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