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Portfolio alpha is received by measuring the distinction between the return from the portfolio and that of the benchmark portfolio. This measure seems to generally be the sole reliable overall performance measure To judge Lively management. The truth is, We've to differentiate involving usual returns, supplied by the reasonable reward for portfolio exposure to different dangers, and obtained by way of passive management, from irregular overall performance (or outperformance) mainly because of the manager's skill (or luck), whether via sector timing, inventory selecting, or fantastic fortune.

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