C IS CORRECT. UNLIKE THE SHARPE RATIO, THE INFORMATION RATIO IS AFF...

9. C is correct. Unlike the Sharpe ratio, the information ratio is affected by the addition of cash

or the use of leverage. The information ratio for such a combined portfolio will generally be

lower. However, the information ratio of an unconstrained portfolio is unaffected by the

aggressiveness of active weights. A and B are correct statements. Section 3.2-3.3. LO.d.