- CFA Exams
- CFA Exam: Level II 2021
- Study Session 17. Portfolio Management (2)
- Reading 47. Analysis of Active Portfolio Management
- Subject 3. The Fundamental Law of Active Management
CFA Practice Question
The base of the correlation triangle measures the ______ value added through active management.
B. realized
C. absolute
A. expected
B. realized
C. absolute
Correct Answer: B
It is the difference between the realized returns on the actively managed portfolio and the benchmark portfolio.
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