A archived_user New member Joined Dec 7, 2011 Messages 0 Reaction score 0 Oct 20, 2019 #1 Why do we use Active risk squared = active factor risk + active specific risk ? Cant we just use active risk instead? Thanks
Why do we use Active risk squared = active factor risk + active specific risk ? Cant we just use active risk instead? Thanks
A archived_user New member Joined Dec 7, 2011 Messages 0 Reaction score 0 Oct 20, 2019 Thread starter #2 Variances (with correlations of zero) add. Standard deviations do not.
A archived_user New member Joined Dec 7, 2011 Messages 0 Reaction score 0 Oct 20, 2019 Thread starter #3 Whats the difference between active risk and active risk squared?
A archived_user New member Joined Dec 7, 2011 Messages 0 Reaction score 0 Oct 20, 2019 Thread starter #4 5% vs 5%2 = 0.25%