- 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 average realized information ratio across investment funds with the same benchmark should be about ______.
B. 0
C. -1
A. 1
B. 0
C. -1
Correct Answer: B
Active management is a zero-sum game. However, the average ex ante information ratio should be positive, or investors would simply invest in the benchmark.
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