In the curriculum it says we use a returns-based style analysis to calculate a coefficient of determination measuring style fit. The quantity 1 minus style fit = selection, the fraction of return variation unexplained by style.
Further it says that the error term in the style analysis equation, difference between the portfolio’s return and a passive asset mix with the same style as the portfolio, represents selection return.
Are these two paragraphs talking about the same thing --> So 1 - style fit = equals selection, which is the same as the error term?