PalacioHill

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)

Valores

total active return = 1
assuming benchmark is the managers benchmark
true active return = 10-12 =-2

misfit = 12-9=3

liangfeng

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.

wake2000

not investor's normal
but manager's normal portfolio

cityboy

true active is more precise
but total active is what mostly use
depends on the question

mp3bu

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.

Zestt

if "return of portfolio" is the manager's return and "investor's normal benchmark" is the managers normal benchmark, then 1%.