- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 45. Analysis of Active Portfolio Management
- Subject 3. The Fundamental Law of Active Management
CFA Practice Question
If the transfer coefficient is zero, the investor should ______.
A. invest in the benchmark portfolio
B. maximize the number of bets
C. increase the level of aggressiveness
Explanation: The expected active return will always be zero in this case. The investor should just invest in the benchmark portfolio.
User Contributed Comments 0
You need to log in first to add your comment.