40: Active Portfolio MGMT Flashcards
1
Q
Weightings should be verifiable:
A
ex ante
2
Q
Return data should be available on:
A
timely basis ex-post
3
Q
A closet index fund with have:
A
- very low active risk
- Sharpe ratio very close to the benchmark
Information Ratio is not an indicator
4
Q
Ex ante
A
relative expected
5
Q
ex post
A
realized
6
Q
Measures the degree to which an investors forecasts are translated into active weights
A
Transfer coefficient
7
Q
For any given asset class, the investor should choose the manager with the highest expected skill measured as:
A
Information ratio
