CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Continue with the previous question. Consider the following benchmark and managed portfolio.

What is the value added from the security selection?

A. 0.45
B. 0.315
C. 0
Correct Answer: C

The value added from the security selection = wP, stocksRA, stocks + wP, bonds RA, bonds

Since both RA, stocks and RA, bonds are zero, the value added from the security selection is zero.

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