Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

CFA Events Calendar

View full calendar

CFA Events Calendar

View full calendar

Recommended Discussions

See how our partners can help you ace your CFA exams.

Calculating Active Security Returns, Reading 54, Practice Problem 2

gbishopgbishop Edmonton, Alberta, CanadaPosts: 1 Associate
Hi all,
I understand the concept of active security returns, but I'm having trouble with part of the answer to practice problem #2 in this reading.

In the third part of the answer it shows how to calculate the active portfolio return from the active weights multiplied by the active security returns. I can't figure out how the active security returns are calculated from the information given. In the answer to the problem they give the active security returns as 2%, 3%, 0%, -4% and -2%. How are those numbers calculated?



Sign In or Register to comment.