CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

The value added through active management is a direct function of the correlation coefficient between the ______ and the ______.

I. active weights
II. realized active returns
III. forecasted active returns
A. I and II
B. II and III
C. I and III
Explanation: Value added = Sigma (active weightsi x realized active returnsAi)

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