Spolier - Mock Question 23

CFA Level III
#1

Can someone explain the two calculations that were needed for this answer? For the active return, I thought it was the (Mgr Ret - Normal Benchmark) For the active risk, I don’t see how the answer gets to 1.65.

#2

there is errata posted for this question http://www.cfainstitute.org/cfaprog/resources/mockexams.html

#3

Thanks - That solves the 2nd part of my question, however I am still mixed up on the Active Return calc. Can anyone help on this?

#4

The true active return is compared to the normal benchmark. They only asked for the portfolio active return (i.e. the total active return), which is compared to the investor benchmark.

#5

Man I feel like an idiot on that one. Thanks

#6

i feel dumb too. i was using true active return. doh!