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Please someone explain how to understand which measure(IC or TC) to be used to calculate the efficiency in question 25 and 26.
I think, Q25 is about IC, as question started with stating that managers claiming of forecasting returns. Skill of forecasting return is captured by IC.
then Q26 is about TC, Q started with constructing efficient portfolio and then says make full use of their ability to correctly anticipate return. And ability to anticipate is captured by TC !!
Q25 ans will be the manager with Highest IC and Q26 ans will be manager with highest TC.
So calculate them and check the answer and let me know that answers are matching or not !!