FREEDOM FRONTIER FUND IS AN ACTIVELY MANAGED FUND WITH ACTIVE RISK...

7. Freedom Frontier Fund is an actively managed fund with active risk of 11% and an

information ratio of 0.5. Its benchmark has a Sharpe ratio of 0.3 and standard deviation of

8%. The optimal active risk is closest to:

A. 13.33%.

B. 13.60%.

C. 14.10%.