Is this a correct statement ?

CFA Level III
#1

To calculate the active risk, subtract the expected market risk from the risk of each portfolio component. Ref. Shweser Qbank Question ID#: 47434

#2

False. Active Risk is the Std Deviation of active returns. And std deviations are not additive/subtractive…at least i believe so.

#3

Wrong!! Active risk is the std of alpha. A.K.A, tracking error, trakcing risk.

#4

i agree with ws

#5

Ok so WS and I said the same thing…so why dont you agree with me :slight_smile:

#6

I am sure cfacfa is also agreeing with you…need a hug??? How are your rentention?

#7

I agree with bigwilly.

#8

Great we all agree …

#9

YAY! I need a hug…

#10

false