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Basic Question 0 of 7
Continue from the previous question. The actively managed portfolio has an information ratio of 0.5 and active risk of 10%. The benchmark portfolio has a Sharpe ratio of 0.4 and total risk of 15%. If the actively managed portfolio is constructed with the optimal level of risk, its Sharpe ratio will be ______.
B. 0.64
C. 0.82
A. 0.56
B. 0.64
C. 0.82
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I used your notes and passed ... highly recommended!
Lauren
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.