Active Risk(redirected from Active Risks)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The risk a portfolio or fund acquires when it is actively managed, especially when its money managers attempt to outperform some benchmark. That is, the more a fund or portfolio differs from the benchmark upon which it is based, the more likely it is to underperform or outperform that same benchmark. This extra risk is active risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved