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Basic Question 4 of 13
You have five individual securities to choose from to construct your portfolio. Their active returns are uncorrelated with each other. You can rebalance your portfolio twice a year. What is the breadth of your forecasts?
B. 10
C. 25
A. 5
B. 10
C. 25
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe and interpret the fundamental law of active portfolio management including its component terms - transfer coefficient, information coefficient, breadth, and active risk (aggressiveness);
CFA® 2025 Level II Curriculum, Volume 6, Module 38.