Active risk

Active Risk
Active Risk definition :
The risk (annualized standard deviation) of the active return.Also called the tracking error.
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ACTIVE RISK - The risk (annualized standard deviation) of the active return. Also called the tracking e...
ACTIVE TRANCHE - A REMIC tranche that is currently paying principal payments to its owners.

offer an attractive risk-reward tradeoff, and
are largely uncorrelated with returns on traditional stock or bond portfolios, making them an excellent means for diversifying institutional portfolios.

Active Risk
The risk within a fund that arises from stock selection or market timing decisions taken by the portfolio manager with a view to profiting f...(Read more)
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The structure may lead to seemingly attractive risk/return over other debt instruments when the instruments function properly, but can also lead to illiquidity and pricing problems when markets are disrupted.

Return relative to a benchmark. If a portfolio's return is 5%, and the benchmark's return is 3%, then the portfolio's active return is 2%.
Active Risk ...

See also: Financial risk, Debt financing, Banks, Efficient market, Active management