title: Financial Risk Manager Handbook (Wiley Finance)
author: Philippe Jorion
description: <b>The essential reference for financial risk management</b>
zlib_text: Question #1 of 28
  Question ID: 1210852
  Which of the following terms is the cross-sectional correlation between forecasted active
  returns and actual active weights adjusted for risk?
  A) Information Coe�cient
  B) Transfer Coe�cient
  C) Breadth
  Explanation
  Transfer coefficient = TC = CORR (μi/σi, Δ wiσi)
  (Study Session 17, Module 47.3, LOS 47.c)
  Related Material
  SchweserNotes - Book 5
  Question #2 of 28
  Question ID: 1210856
  An active manager has an information coefficient of 0.08, transfer coefficient of 0.50, and
  makes 100 independent bets per year. What is the expected active return for an active risk
  constraint of 5%?
  A) 2.0%
  B) 2.4%
  C) 1.8%
  Explanation
  (Study Session 17, Module 47.3, LOS 47.c)
  Related Material
  SchweserNotes - Book 5
  Question #3 of 28
  Question ID: 1210859
  Mahakali 
  Ques
  Book 
  ok
  ok Center 
  9920411158 
  ion ID
  / 
  1 
  9820665601
  982
  982
  82
  
  An active manager has an information coefficient of 0.07, transfer coefficient of 0.90, and
  makes 49 independent bets per year. Benchmark