CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Which of the following components in the full fundamental law of active management measures how well the anticipated (ex-ante) risk-adjusted returns correlate with the risk-adjusted active weights?
A. Transfer coefficient
B. Information coefficient
C. Breadth
Explanation: The transfer coefficient measures the degree to which the investor'??s forecasts are translated into active weights.

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