Level 3 Mock Q23 investor, return, manager

lingm

Don't agree with the answer as I think true active return should = manager return - normal benchmark,  not as answer which is (manager return - investor benchmark)...what do you think?

xuxu1980

the problems says"to acheive a TOTAL active return of at least 2.1 percent and have a TOTAL active risk of no more than 1.8%".

total active return=manager return - investor benchmark

I spent several minutes on this problem. I agree with the answer key though.

yyk6221

true active return should = manager return - investor benchmark

Active return = true active return + misfit active return = management return - normal banchmark.