CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

The actual information ratios, after uncertainty of skill is accounted for, are ______ predicted by an objective application of the original form of the fundamental law.

A. substantially lower than
B. on average about the same as those
C. substantially higher than
Correct Answer: A

The higher the uncertainty about forecast ability, the smaller the expected value added is likely to be.

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