CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

TC = ______ represents a perfect correspondence between active weights taken and forecasted active returns.

A. 1.00
B. 0.00
C. -1.00
Correct Answer: A

TC can take on values anywhere from -1.00 to +1.00. TC = 1.00 allows the full expected value added to be reflected in the portfolio structure.

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