true active return should = manager return - investor benchmark
Active return = true active return + misfit active return = management return - normal banchmark.
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.
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