Ch.10 · Risk Measures and Ratios · medium
What is the 'quartile ranking' used in mutual fund performance comparison?
0% of students got this wrong
EXPLANATION
Quartile ranking divides all funds in a category into 4 equal groups by return performance. Q1 funds are the top 25% performers, Q4 are the bottom 25%. Consistently Q1/Q2 ranked funds over multiple periods and time horizons indicate superior active management. Single-period quartile rankings can be misleading — rolling quartile consistency is more informative.
Practising Chapter 10 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.