Equity-Returns based analysis-Require clarity if 1-style fit is active selection of securities by the manager

CFA Level III Equities
#1

HI Guys,

Require clarity if 1-style fit is active selection of securities by the manager-

Question:

Morris calculates the style fit for the four years at 80% and the annualized tracking risk at 8.2 percent. The annualized active return to the portfolio is -0.75 percent. A. Determine whether the portfolio was actively managed for the period shown and support your answer with one reason. No calculations required.

Given style fit is 80% rest 20% is attributed to manager active selection of securities right- so answer to A will be Yes actively managed?

Thanks ,

#2

I would rather choose active risk or active return as a proof of active management. Style fit of 80 % does not mean that fund was passively managed. 1-Style fit may be considered as stock picking, therefore you may be correct.

#3

Well FINquiz says its passive mgmt which I feel is incorrect.