This question-specific review guide is tied to the answer reasoning for a PracticeTestVault item. Use it after you answer the question so the review stays focused on what the prompt actually tested.
What this question is testing
Objective: Performance evaluation
Prompt focus: The information ratio measures a portfolio's:
Why the correct answer works
Active return relative to a benchmark divided by the tracking error
Correct. The information ratio is active return relative to a benchmark divided by the tracking error.
Why the tempting wrong answer fails
The tempting wrong answer usually loses because it skips the key condition, priority, or evidence in the prompt.
Plain-language takeaway
Use the rationale to connect the prompt clue, the correct choice, and the tested objective before retaking a similar item.
Simple analogy
Think of performance evaluation like following a short checklist: identify the clue, confirm the rule, and then make the move that fits this exact scenario.
How to review it before a retake
- Underline the command word and name what the question is asking before rereading the choices.
- Compare the correct answer against the closest distractor and write the exact detail that separates them.
- Retest this objective with a fresh question without looking at the rationale first.