CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

Two active managers, A and B, have IRs of 0.7 and 0.8, respectively. Which manager has more opportunities?
A. Manager A
B. Manager B
C. This cannot be determined.
Explanation: Manager B has a higher IR, which indicates more opportunities.

User Contributed Comments 4

User Comment
alejandroc But opportunities are measured by breadth; how do we know if one has more opps? Theoretically a manager could have a higher IC (predictive capability) but lower opportunities. Am I wrong?
janis36 What do we mean by "opportunities"?
dimitris13 I thought exactly the same thing but I am not certain we are right
yanoshi What if manager B has a lower breadth but a higher IC or TC?
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