- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 45. Analysis of Active Portfolio Management
- Subject 1. Active Management and Value Added
CFA Practice Question
If a narrower-than-the-total-market benchmark is used, active investors as a group ______.
A. cannot underperform the market
B. cannot overperform the market
C. can underperform or overperform the market
Explanation: Active management would not generally be a zero-sum game because investors might invest in assets outside the benchmark.
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