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A reward-to-risk ratio defined as the portfolio’s mean active return (the difference in average return between the portfolio and its benchmark) over its active risk (tracking error).

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The CFA Institute Investment Foundations Program covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.


1. A reward-to-risk ratio defined as the portfolio’s mean active return (the difference in average return between the portfolio and its benchmark) over its active risk (tracking error).





 
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