CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

The breadth depends on the ______.

I. number of securities considered
II. forecast intervals
III. magnitude of the difference between expected and realized active returns
IV. correlations among the securities
Correct Answer: I, II, and IV

The breadth is the number of independent investment options that are available to an asset manager every year.

User Contributed Comments 2

User Comment
davidt87 then why tf would it have to do with correlation among securities? this section is pissing me off
davidt87 last reading explains that the active returns must be uncorrelated for the breadth to equal the number of assets - still don't like this section tho
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