Featured

Analysis of Active Portfolio Management (2022 Level II CFA® Exam – Reading 43)



Published
Level II CFA® Program Video Lessons offered by AnalystPrep
For Level II Practice Cases and Mock Exams: https://analystprep.com/shop/practice-package-for-level-ii-of-the-cfa-exam-by-analystprep/

For Level I Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/cfa-level-1-learn-practice-package/

For FRM (Part I & Part II) Video Lessons, Study Notes, Question Bank, CBT Mock Exams & More: https://analystprep.com/shop/unlimited-package-for-frm-part-i-part-ii/

Topic 9 – Portfolio Management
Reading 43 – Analysis Of Active Portfolio Management
LOS : Describe how value added by active management is measured.
LOS : Calculate and interpret the information ratio (ex-post and ex-ante) and contrast it to the Sharpe ratio.
LOS : State and interpret the fundamental law of active portfolio management including its component terms—transfer coefficient, information coefficient, breadth, and active risk (aggressiveness).
LOS : Explain how the information ratio may be useful in investment manager selection and choosing the level of active portfolio risk.
LOS : Compare active management strategies (including market timing and security selection) and evaluate strategy changes in terms of the fundamental law of active management.
LOS : Describe the practical strengths and limitations of the fundamental law of active management.
Category
Management
Be the first to comment