- 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 active manager's objective is to maximize ______.
A. residual return
B. information ratio
C. value added
Explanation: The objective of active management is to add value in the investment process by doing better than a benchmark portfolio.
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