True Active Risk calculation

[Koroptim]

In the calculation of true active risk you are given two of the three variables and asked to solve. Total active risk = the square root of true active risk squared plus misfit active risk squared. I’m having trouble with this one…isn’t the square root of a number squared the original number??

[S2000magician]

@Koroptim

In the calculation of true active risk you are given two of the three variables and asked to solve. Total active risk = the square root of true active risk squared plus misfit active risk squared. I’m having trouble with this one…isn’t the square root of a number squared the original number??

Yes, but the square root of a sum isn’t the sum of the square roots:

5 = √(3² + 4²) ≠ √3² + √4² = 3 + 4 = 7.

The formula is:

Total active risk = √(true active risk² + misfit active risk²)

Think of total active risk as an hypotenuse.

[Allstatsandy]

the plus sign is the reason Koroptim’s logic does not work

I agree with S2000magician

[Koroptim]

Thanks for helping to clarify. Makes sense

[S2000magician]

@Koroptim

Thanks for helping to clarify.

My pleasure.

@Koroptim

Makes sense

A first time for everything.