A Large-Cap Manager That Has the S&P 500 as Her

question 37

Multiple Choice

A large-cap manager that has the S&P 500 as her benchmark decides to increase her allocation to cash. What impact will this have on total risk, active risk and active share of her portfolio?

• A) Total risk and active risk will decrease, and active share will increase.
• B) Total risk will decrease, and active risk and active share will increase.
• C) Total risk and active share will decrease, and active risk will increase.
• D) Total risk, active risk and active share will all decrease.

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