Zestt

I got this one incorrect too. I thought 7% was good enough to be called an ACTIVE strategy.


Your answer: A was incorrect. The correct answer was C) The high style fit (93%) indicates that Gamma Managers should increase the amount of active management in the future.

Again, the high style fit probably indicates a passive strategy which does not follow GM’s mandate to actively manage the small-cap growth portion of the plan’s equities. To follow its mandate of active management, GM would need to increase the amount of active management resulting in a smaller style fit (R2)