Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
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.
User Contributed Comments 0
You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.