JustasS

11E- Suggests that the long-short manager is generating 20% of his active return from non-US equities. Long-short manager’s style index or normal benchmark is cash with Russell 1000 overlay however investor’s benchmark is Russell 3000. As calculated in (A) the manager doesn’t have a large misfit risk suggesting majority of total risk is driven by active risk only. So manager seems to managing well his non-US part as well…