Returns

CFA Level III
#1

Generally speaking, does active return, according to CFAI, mean true active return?

#2

You talking about morning section right? Yes that’s what I interpretted, so I think the answer was simply: actual return - normal portfolio return.

#3

square root(total active risk^2-misfit risk^2)

#4

i used actual - market. njboe227 Wrote: ------------------------------------------------------- > You talking about morning section right? Yes > that’s what I interpretted, so I think the answer > was simply: > > actual return - normal portfolio return.

#5

true active return/true active risk total active risk= (ture active risk2)+(misfit2)^1/2

#6

answer for misfit - 2.7