Colum

thems Wrote:
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> active risk of individual securities makes no
> sense...this is total portfolio

It does make sense if your talking about the risk of your satellite active managers in a core-satellite approach. See reading 32.

active risk = sqrt( (w1^2 * std dev1 ^ 2) + (w2^2 * std dev2 ^ 2) + ...)
where
w1 = weight of active manager 1
std dev1 = std dev of active manager 1
and so on