2005 Q2 A active risk

the ans is incorret

the individual manager’s risk can be offset by other individual managers’s portfolio risk.focring an individual manager to minimize tracking error or mimic the benchmark could in fact rasise plan-wide active risk.

i can not understand the answer.

why the total active risk increases if the manager mimic the benchmark?

2005? really?

tulkuu discussed this question few days ago…pl search