Hi all! I have a quick question which arose while I have been going through the material. Q13 at the end of Reading 29 (Active Equity Investing: Portf Construction) has the following answer: “Finally, for managers with similar costs, fees, and alpha skills, if two products have similar active and absolute risks, the portfolio with a higher active share is preferred”.
Can you please explain the rationale behind this? I have tried to understand but still, have no explanation.