True Active Risk calculation

[Koroptim]

In the calculation of true active risk you are given two of the three variables and asked to solve. Total active risk = the square root of true active risk squared plus misfit active risk squared. I’m having trouble with this one…..isn’t the square root of a number squared the original number??

 

[S2000magician]

Koroptim wrote:In the calculation of true active risk you are given two of the three variables and asked to solve. Total active risk = the square root of true active risk squared plus misfit active risk squared. I’m having trouble with this one…..isn’t the square root of a number squared the original number??

Yes, but the square root of a sum isn’t the sum of the square roots:
5 = √(3² + 4²) ≠ √3² + √4² = 3 + 4 = 7.
The formula is:
Total active risk = √(true active risk² + misfit active risk²)
Think of total active risk as an hypotenuse.

 

[Allstatsandy]

the plus sign is the reason Koroptim’s logic does not work
I agree with S2000magician

 

[Koroptim]

Thanks for helping to clarify. Makes sense

 

[S2000magician]

Koroptim wrote:Thanks for helping to clarify.

My pleasure.

Koroptim wrote:Makes sense

A first time for everything.