Ch.10 · Risk Measures and Ratios · hard
What is 'active share' in mutual fund analysis?
0% of students got this wrong
EXPLANATION
Active share ranges from 0% (index replica) to 100% (no overlap with benchmark). High active share (>60-70%) means the fund is significantly different from its benchmark — genuinely active management. Low active share may indicate 'closet indexing' — a fund charging active management fees but closely tracking the index. SEBI has flagged closet indexing as an investor concern.
Practising Chapter 10 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.