CFAI AM 2008 Q23...
Why is 20% invested in index/enhanced enough to make this fund of funds a core-satellite? Is there a range specified in the literature somewhere? Or CFA exams that show mins and maxes?
I couldn't find anything in the book. The example seems to show around 40-60%... So for this question I answered B, incorrect (that it is a core-satellite portfolio) because too little of the portfolio is passively invested.
Thoughts? |