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Basic Question 12 of 14
In 2014, your portfolio achieved a mean return of 8% while the benchmark portfolio earned a mean return of 6%. Your portfolio's tracking error was 10%. The information ratio for your portfolio in 2014 was ______.
B. 0.6
C. 0.8
A. 0.2
B. 0.6
C. 0.8
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.