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Basic Question 5 of 13
The risk-free rate is 1.8%. You have a choice of investing in two funds:
B. hold some cash and invest the rest in Fund B.
C. invest in both Fund A and Fund B.
You want to accept a maximum volatility of 17.4% only. You best option is to ______
A. invest in Fund A only.
B. hold some cash and invest the rest in Fund B.
C. invest in both Fund A and Fund B.
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Learning Outcome Statements
calculate and interpret the information ratio (ex post and ex ante) and contrast it to the Sharpe ratio;
CFA® 2025 Level II Curriculum, Volume 6, Module 38.