Fundamental Law of Active Management
Integrating the Building Blocks: Breadth of Expertise A manager may be more or less successful at combining these three sources …
active return
Building Blocks of Active Equity Portfolio Construction
Investors who pursue active management are looking to generate portfolio returns in excess of benchmark returns (adjusted for all costs) …
Active Return
The active return (RA)—of an actively managed portfolio is driven by the difference in weights between the active portfolio and the …
Module 50.1 LOS 50.a: Calculate the Active Return of a Portfolio
Active return measure the value that active management adds. It can be measure ex-ante, based on expectations, or ex-post, based …
Module 47.3 LOS 47.e: Components of Active Risk and Active return
Active return is the difference in returns between a managed portfolio and its benchmark: Active return = RP – RB Active risk (also …