- CFA Exams
- CFA Level I Exam
- Study Session 17. Portfolio Management (2)
- Reading 47. Analysis of Active Portfolio Management
- Subject 1. Active Management and Value Added
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? |