So I have seen misfit active return a few times in performance evaluation and it is defined as:
misfit active return= managers benchmark - investors benchmark
In the context of macro attribution it seems to be also called misfit risk or style bias. However, the definition here does not seem to have anything to do with the previous one, that is there is no investor benchmark given. And the term misfit risk only appears at the very bottom of that paragraph in the book as a sidenote, so it seems to me that the term misfit risk here is 1) not the same as above 2) and not very fitting.
It is defined as the incremental return added by over/underweighting styles (e.g.value vs. growth)
Can someone confirm