Volume 4- SS 10- Reading 31

on pg 164 Question 11C…they ask for active risk…if you look on pg A-11 for the answer…that formula with the square root…does not equal 1.05%. 07*1.5% simply equals 1.05%. Would you guys agree this is an error in the text? The answer 1.05% is correct, but that formula is not appropriate.

Any takers??..this could be your excuse to put down Schweser or Stalla…and pick up CFAI text.

Formula right in this context of portfolio active risk. Look at page 141 vol 4. CFAI uses active risk in diffreent contexts and has a different formula in the more conventional sense but this answer and formula is correct.

You’ve actually solved for those numbers and it comes out to be 1.05%?..i believe I kept getting something like .70