Chartered Financial Analyst Level 2
Get started today
Ultimate access to all questions.
5 According to the fundamental law of active management, if breadth increased by a factor of four and active portfolio risk decreased by a factor of four, all else being equal, the expected active return would:
5 According to the fundamental law of active management, if breadth increased by a factor of four and active portfolio risk decreased by a factor of four, all else being equal, the expected active return would:
Exam-Like
A
halve.
B
remain unchanged.
C
double.
Comments
Loading comments...