SN, Bk4, page22 R^2 measures the style fit. One minus this amount indicates the amount unexplained by style and due to manager’s security selection. My interpretation is that 1 - R^2 is due to active management. But then I got confused when they say “The error term in the regression is referred as the manager’s selection return.” So which one indicates active management, and what the other one indicates? Thx.