RE: Item Set Questions on Mock Exam. Sarkar (style fit an indicator of active management?)

[veryjasper]

Q5,
Manager A is the answer, why is manager B not the answer?
Is style fit an indicator of active management?

 

[Bilal]

It’s the portion that cannot be explained .. Return Based Style 1 - Style fit = portion not explained (not passively managed).

 

[veryjasper]

does that have something to do with the “misfit risk” and “true active return”??