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Active risk squared

Why do we use Active risk squared = active factor risk + active specific risk ?

Cant we just use active risk instead? Thanks

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Variances (with correlations of zero) add.

Standard deviations do not.

Simplify the complicated side; don't complify the simplicated side.

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Whats the difference between active risk and active risk squared?

5% vs 5%2 = 0.25%

Simplify the complicated side; don't complify the simplicated side.

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