This is the first para from item set –
John Martinez is assessing the performance of the actively managed diversified asset portfolio. The diversified asset portfolio is invested in equities, bonds, and real estate, and allocations to these asset classes and to the holdings within them are unconstrained.
My doubt is why they have taken TC also while calculating IR as they have already mentioned in the first paragraph that the portfolio is unconstrained.
Hey Aniket, what I can conclude is the fact that they have asked us to find out the IR based only on exhibit 2 & they may have used the word unconstrained loosely.
Don’t be worried, in exam they will not create this confusion. Thank you!
Thank you