Active Portfolio Management — Free Resources

CFA Institute — Analysis of Active Portfolio Management: https://www.cfainstitute.org/insights/professional-learning/refresher-readings/2026/analysis-active-portfolio-management

Use for: - active return - active risk - information ratio - information coefficient - breadth - transfer coefficient - Fundamental Law

MIT Finance Theory I: https://ocw.mit.edu/courses/15-401-finance-theory-i-fall-2008/

Use CAPM/APT materials as reinforcement for beta and systematic risk.

Information ratio

Wikipedia — Information ratio: https://en.wikipedia.org/wiki/Information_ratio

Information coefficient

Wikipedia — Information coefficient: https://en.wikipedia.org/wiki/Information_coefficient

Information Coefficient (IC) — Financial Edge Training: https://www.fe.training/free-resources/portfolio-management/information-coefficient-ic/

Use for Pearson vs. Spearman IC, and typical real-world IC ranges.

Fundamental Law, breadth, transfer coefficient

Fundamental Law of Active Management — Financial Edge Training: https://www.fe.training/free-resources/portfolio-management/fundamental-law-of-active-management/

Fundamental Law of Active Management Explained (CFA Level 2) — YouTube: https://www.youtube.com/watch?v=vp-NnvYlnPQ

Original transfer-coefficient extension (academic, deeper reading): Clarke, de Silva & Thorley, "Portfolio Constraints and the Fundamental Law of Active Management," Financial Analysts Journal 58(5), 2002.