- CFA Exams
- CFA Level I Exam
- Study Session 17. Portfolio Management (2)
- Reading 47. Analysis of Active Portfolio Management
- Subject 3. The Fundamental Law of Active Management
CFA Practice Question
A stock selector follows 100 companies and revise assessments each quarter. Assume the companies' active returns are uncorrelated with each other. To have an IR of 0.6, the stock selector needs an IC of ______.
A. 0.03
B. 0.06
C. 0.006
Explanation: 0.6 = IC x 4001/2, IC = 0.03
User Contributed Comments 0
You need to log in first to add your comment.