Question #17
Reading: Reading 40 Analysis of Active Portfolio Management
PDF File: Reading 40 Analysis of Active Portfolio Management.pdf
Page: 7
Status: Correct
Correct Answer: A
Question
Which of the following is correct for an unconstrained active portfolio?
Answer Choices:
A. TC=1
B. TC>1
C. TC<1
Explanation
TC=1 if the active portfolio has no constraints.