PM Q's 40 & 41: True / Misfit Return / Risk: Was I right????

Okay: I only glossed over this material, so I don’t know if I was right: Question 40: They showed a few portfolios, but they wanted the true active return and the misfit return for portfolio five. His active return was 2% They didn’t show his “normal return,” so I wasn’t sure what to do. The answers (true/misfit) were as follows: A: -1%/3% B: -1%/2% C & D both had 3% for true, but I forgot what they had for misfit. I picked A, because it was the only answer that added up to 2% (his total active return). Am I right? Question 41: They showed in the vignette that his TRUE active risk was 5%. They asked for his true Info ratio. I said that it was -.4 – because I figured it was -2% / 5% Again, am I right? I imagine this would be easy to someone who adequately studied it. Not me, though.

no -.20 was true IR

I got -1, 3, -.2 info ratio.

purrrrrrfect emar

same here, -1, 3 and -0.2, though I had doubt in -0.2

Wait, I put -.2 for the true info ratio. So, everyone likes 1, 3 and -0.2? Nice.

i love it :slight_smile:


emarkhans Wrote: ------------------------------------------------------- > I got -1, 3, -.2 info ratio. i believe i got the same

woooooooot. let’s grade the exam on this question only.