Question: 5. Suppose an active equity manager has earned an active return of 110 basis points, of which 80 basis points is the result of security

 5. Suppose an active equity manager has earned an active return

5. Suppose an active equity manager has earned an active return of 110 basis points, of which 80 basis points is the result of security selection ability. Explain the likely source of the remaining 30 basis points of active return

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