Portfolio Management Questions

CFA Level II Portfolio Management
#1

Hello,

I’ve two questions concerning portofolio management:

  1. how to interpret value added for active management? Can we translate the value added into dollar amount?

  2. For the combined information coefficient, ICcom=IC*(2/1+r)^(0.5), r is the correlation between the old information and the new one. But if the correlation is -1, how to apply this formula?

Thanks for your responses