Total Active Return 2009, active, return

Iginla2010

What is this? I know true active return which is Manager's Return - Normal portfolio return

It is given in Mock 2009 - Q23

bpdulog

can you check problem 23 in Mock 2009

pennyless

The PM Section? I don't have a copy of it... can you email it to me and I'll look

r.a.c.hawkins at gmail.com

wake2000

Yes, CF_AHH... is right. See page 259 of Volume4 (SS11)

bodhisattva

And for the record... "misfit return" is a really misleading thing to call it.

It makes it sound as though the manager is a screw off, as in: "He's a misfit!"

when in reality its actually saying "This is the return you receive because of the slight differences in your benchmarks"

Dumb.

Iginla2011

Actually you have to go in and calculate the active risk for the entire portfolio... the formula is too cumbersome to write out here but check page 158 Book 3 of the Schweser notes, it has an example of exactly this calculation.

Edit: It's not the formula that CFAHHHH gave, either... that will get you the answer to #24 but #23 is an entirely different calc.



Edited 1 time(s). Last edit at Sunday, May 30, 2010 at 12:26AM by Aimee.

ohai

FYI

if you add those two components, you will end up with this formula:

Total active return = Manager's return - Investor's benchmark return.

Darien

Aimee Wrote:
-------------------------------------------------------
> Actually you have to go in and calculate the
> active risk for the entire portfolio... the
> formula is too cumbersome to write out here but
> check page 158 Book 3 of the Schweser notes, it
> has an example of exactly this calculation.
>
> Edit: It's not the formula that CFAHHHH gave,
> either... that will get you the answer to #24 but
> #23 is an entirely different calc.


Could you please post the question?