Consider a portfolio P of two securities: A and B. Over a period of 12 months, security A yields a monthly return that alternates between 1% and 2% while security B yields a fixed monthly return of 0.2%. The portfolio weight of security A alternates between 50% when the monthly return is 1% and 90% when the monthly return is 2%.

Find the average monthly return of the portfolio and break it down into its active component δP and passive component λP, and then compute the active ratio θP using the weight-based performance approach