FinQuiz smart summary, study session 17, reading 42

... alpha is large relative to tracking error incurred Copyright © FinQuiz. com All rights reserved 2013, Study Session # 17, Reading # 42 Risk Allocation & Budgeting Risk allocation ⇒ Decomposing...2 2013, Study Session # 17, Reading # 42 Currency Management Passive currency management ⇒ matching the currency weights... Active risk ⇒ deviation from passive benchmark Usually annualized & expressed in % per year Risk-Adjusted Performance Sharpe Ratio Information Ratio Should only be used for the total global portfolio