“To determine the fund’s excess return over several periods, we compound the fund’s single-period returns and compound the benchmark’s single-period returns. The difference between the two would be the total excess return attributable to active management.”
correct or incorrect. Provide reasoning with your answer作者: strikethree 时间: 2011-7-11 19:50
seems correct. It's the excess returns over single periods that you cannot compound, but total returns should get you there.作者: IAmNeil 时间: 2011-7-11 19:50
correct chi paul作者: infinitybenzo 时间: 2011-7-11 19:50
Chi Paul is correct. The answer is correct.
It is from Schweser's Mock. I got it wrong作者: Zestt 时间: 2011-7-11 19:50
cfaboston28 Wrote:
-------------------------------------------------------
> Chi Paul is correct. The answer is correct.
>
> It is from Schweser's Mock. I got it wrong
Gotcha; the wording is a little funny as they talk about excess returns at first and then go on to describe total returns.
