Reading 35 End of Chapter Question 2

CFA Level III Portfolio Management
#1

Hi all,

In question 2 of the end of chapter questions ( Reading 35), the guideline answer mentions that the portfolio is managed against a benchmark. The question does not seem to indicate that the portfolio is managed against a benchmark. How may one know that this portfolio is managed against a benchmark? Any help will be appreciated.

#2

Hint: What’s the denominator for upside capture and downside capture?

#3

The return of the benchmark

1 Like
#4

And there you have your answer