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Active Portfolio Management Q14

Hello guys,

I refer to Q14- can someone please explain how CFAI comes up to 0.1765 for Scurity 1?

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Tek80 wrote:

Hello guys,

I refer to Q14- can someone please explain how CFAI comes up to 0.1765 for Scurity 1?

It’s the forecast active return divided by the risk of the security.

0.03/0.17 = 0.1765

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