CFA Level 3| 207 questions| verified| with complete solutions
Information Ration correct answer: IR ~ Info Coefficient (depth of knowledge) * SQRT[Investor Breadth] (# of decisions) Components of Total Active Return correct answer: True Active Return, Misfit Active Return, Total Active Risk, True Info Ratio True Active Return correct answer: = Manager Total Return - Manager Normal Portfolio Return Misfit Active Return correct answer: = Manager Normal Portfolio Return - Investors Benchmark Total Active Risk correct answer: = SQRT [ (True Active Return)^2 + (Misfit Active Return)^2] True Info Ratio correct answer: = (True Active Return) / (True Active Risk) Emerging Markets (Mkt Integration, Mkt Liberalization) correct answer: Mkt Integration + = Equities + Costs less; Mkt +Return, decreases WACC, decreases risk, increases CORR w/ other mkts; Common Featurs of Alternatives correct answer: Low liquidity, diversification, addit due diligence, difficult to value, limited access to info
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- CFA - Chartered Financial Analyst
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cfa level 3| 207 questions| verified| with complete solutions
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