False, not a linear increase because of the square root sign over its calculation. cfaprincess Wrote: ------------------------------------------------------- > so in short, it’s… > 1) True > 2) False > …?
ABsolutely true for the first half and absolutely false for the 2nd half.
I just used IR = active return / active risk. No idea how you guys derived IC to use the other formula.
my only question is why is IB and thus IR calculated for an annual period only. most returns are reported quarterly, NOT annually.
equity_research_nds Wrote: ------------------------------------------------------- > yes whether the defination of breadth is right or > no? > > BREADTH IS THE NUMBER OF ACTIVE DECISIONS MADE BY > A MANAGER IN THE YEAR was the sentence I keep telling myself stop checking AF and don’t touch the textbook but… CFAI textbook Vol.4 pg 136, line number 9 from bottom, square root of the investment disciple’s breadth, which is defined as the number of independent, active investment decisions made each year.
MOPAHT Wrote: ------------------------------------------------------- > wait so that which manager had the highest info > ration it was manager D right? > > (4/8)*SQRT(100) > ____________________ > > should we multiply by ^1/2(100)? > > I supposed that just simply AReturn/ARisk. It was > A or B (0,7. smth) It was A, using AReturn/ARisk. Breadth was distractor info, since IC was not provided. I agree with most that the definition was true, but the calculation was false.