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Basic Question 5 of 7
The more constraints we impose in portfolio construction, the ______ the information ratio.
B. lower
C. same
A. higher
B. lower
C. same
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Edward Liu
Learning Outcome Statements
explain how the information ratio may be useful in investment manager selection and choosing the level of active portfolio risk;
compare active management strategies, including market timing and security selection, and evaluate strategy changes in terms of the fundamental law of active management;
CFA® 2025 Level II Curriculum, Volume 6, Module 38.