Drop what youre doing, fix this formula in 2012 Schweser Qui 2012, active, should

zephyranalyst

SS11: Equities in the 2012 Level 3 Quicksheet has
(total active risk)= SQRT((true active risk)^2 - (misfit active risk)^2))
The formula should ADD the misfit active risk under the square root sign.


(total active risk)= SQRT((true active risk)^2 + (misfit active risk)^2))

dmrktrading

omg. just dropped everything.  thx.

bdavi77962

This is in the errata section of the Schweser website - only noticed it a week ago.