标题: Active Return [打印本页] 作者: cfa10yrplan 时间: 2011-7-13 13:43 标题: Active Return
So if you see a question asking you to calculate "active return" and you see the following items, what would be your answer?
Return of portfolio = 10%
Benchmark = 12%
Investor's Normal Benchmark (same style) = 9%作者: Zestt 时间: 2011-7-13 13:43
if "return of portfolio" is the manager's return and "investor's normal benchmark" is the managers normal benchmark, then 1%.作者: mp3bu 时间: 2011-7-13 13:44
I knew throwing out this question would raise some confusion.
From my understanding, "Active return" is the return from the broad benchmark, the TRUE active return is the one from the investor's normal benchmark.
Is that the correct answer? Confirmation please.作者: cityboy 时间: 2011-7-13 13:44
true active is more precise
but total active is what mostly use
depends on the question作者: wake2000 时间: 2011-7-13 13:44
not investor's normal
but manager's normal portfolio作者: Valores 时间: 2011-7-13 13:44
total active return = 1
assuming benchmark is the managers benchmark
true active return = 10-12 =-2
misfit = 12-9=3作者: liangfeng 时间: 2011-7-13 13:44
pimpineasy Wrote:
-------------------------------------------------------
> total active return = 1
> assuming benchmark is the managers benchmark
> true active return = 10-12 =-2
>
> misfit = 12-9=3
My answer...
Although I don't know why you put (same style) that confuses me.
Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 08:39PM by Paraguay.作者: PalacioHill 时间: 2011-7-13 13:44
Return of portfolio = 10%
Broad market Benchmark = 12%
Manager's Normal Portfolio return = 9%
Sorry thats just the way I remember it in my head (how I wrote it before)作者: bboo 时间: 2011-7-13 13:44
Para dont understand what u mean exactly?
Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 08:43PM by pimpineasy.作者: Analti_Calte 时间: 2011-7-13 13:44
pimpineasy Wrote:
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> Para dont understand what u mean exactly?
I was talking about Soccer. I would have put your answer from his first post. His part where it said same style through me off.作者: lcw77 时间: 2011-7-13 13:44
omg I think I might be the one person who writes questions poorer than the BSAS.....
True active return = manager's total return - manager's normal portfolio return
Misfit active return = manager's normal portfolio return - investor's benchmark
I wanted to know what the "active return" was.... aka manager's total return - investor's benchmark作者: Iginla2011 时间: 2011-7-13 13:44
Soccertom9 Wrote:
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> Return of portfolio = 10%
> Broad market Benchmark = 12%
> Manager's Normal Portfolio return = 9%
>
>
> Sorry thats just the way I remember it in my head
> (how I wrote it before)
True Active +1
Active -2
Misfit -3作者: skycfa 时间: 2011-7-13 13:44
Paraguay Wrote:
-------------------------------------------------------
> Soccertom9 Wrote:
> --------------------------------------------------
> -----
> > Return of portfolio = 10%
> > Broad market Benchmark = 12%
> > Manager's Normal Portfolio return = 9%
> >
> >
> > Sorry thats just the way I remember it in my
> head
> > (how I wrote it before)
>
> True Active +1 .............. dont you mean total?
> Active -2 /...............dont u mean true?
> Misfit -3
from memory作者: NakedPuts00 时间: 2011-7-13 13:44
Soccertom9 Wrote:
-------------------------------------------------------
> omg I think I might be the one person who writes
> questions poorer than the BSAS.....
>
> True active return = manager's total return -
> manager's normal portfolio return
> Misfit active return = manager's normal portfolio
> return - investor's benchmark
>
> I wanted to know what the "active return" was....
> aka manager's total return - investor's
> benchmark
Wrong on the definition of misfit:
Misfit active return = manager's normal BENCHMARK return - investor's benchmark.作者: Roflnadal 时间: 2011-7-13 13:44
pimpineasy Wrote:
-------------------------------------------------------
> Paraguay Wrote:
> --------------------------------------------------
> -----
> > Soccertom9 Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Return of portfolio = 10%
> > > Broad market Benchmark = 12%
> > > Manager's Normal Portfolio return = 9%
> > >
> > >
> > > Sorry thats just the way I remember it in my
> > head
> > > (how I wrote it before)
> >
> > True Active +1 .............. dont you mean
> total?
> > Active -2 /...............dont u mean
> true?
> > Misfit -3
>
>
> from memory
Managers style underperformed 3% to the broad index.
Manager outperformed style by 1%.
-3 + 1 = -2.
That is just how I remember it from doing it every day.作者: Unforseen 时间: 2011-7-13 13:44
pimpineasy Wrote:
-------------------------------------------------------
> hmmmmm refer to cfai vol4 page 259 to see what i
> mean
Managers "true" active return = Manager's return - Manger's normal benchmark. 10 - 9 = 1
Manager's misfit active return = Manager's normal benchmark - Investors benchmark. = 9 - 12 = -3.
Total active return = 1 - 3 or -2.
I don't get it, isn't that what I had?作者: nannan66 时间: 2011-7-13 13:44
forget it never no mind i know what u mean and i know what i mean .......its fine sorry for distracting
