CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

The complete set of active weights sums to ______.
A. zero
B. 1
C. 100
Explanation: The active weights are the differences in the managed portfolio'??s weights and the benchmark'??s weights. Individual assets can be overweighted (have positive active weights) or underweighted (have negative active weights), but the complete set of active weights sums to zero.

User Contributed Comments 2

User Comment
alejandroc Duh. I become more stupid at each turn.
maxsouto Active weights = Portfolio w - Benchmark w?
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