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Basic Question 9 of 13
Assume the active risk of a fund is 4%. If you combine the fund in a 75/25 mix with the benchmark portfolio, the active risk of the combined portfolio will ______
B. become 3%.
C. It is hard to tell.
A. remain at 4%.
B. become 3%.
C. It is hard to tell.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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.