Portfolio specific risk is a measure of active returns for an actively-managed portfolio. It is calculated by taking the standard deviation of active returns. Active returns represent portfolio return minus its benchmark return over the measurement period.
Synonyms: active risk, tracking error
Click box for answer.
Sue: Before you go home, can you estimate
risk for this new product?
Eve: Yes, it's 4 to 6. Not the time, the range.
Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.
Videos can also be accessed from the YouTube Channel.
If this term had a video, the script would be here.
Our trained humans found other terms in the category portfolio risk you may find helpful.
For links to all glossary terms and videos click the Outline button below.
Join other risk specialists on YouTube. Subscribe now.
Next, we hit the calculation of portfolio variance . Click Next.