if we’re asked to calculate the information ratio , do we have to present both gross of fees and net of fees Information ratio ? Somehow I always assumed there was no such term as net-of-fees information ratio.
stop making up stuff! lol
Skip, CFA exam 2007 morning session , question 8 part c , look at the guideline answers
ehhh…its not specifically mentioned anywhere in CFAI text to my knowledge. I think they were just saying that whether the candidate adjusted for fees or not in this calculation does not matter, they would have received full credit either way.
This issue is not discussed in the text at all. If you look at those questions in the old exams, CFAI wrote some questions which were beyond the scope of the curriculum. As for this question, since the fees appeared in it, then we better assume that net “Active Return” shall be used. Be careful to this kind of ambiguities which intentded to kill some candidates. IMO, quantitative return objective is most big/headache issue.