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Explain what the raw return on an actively managed portfolio tells an investor about the skill of the portfolio manager. What computations one would need

Explain what the raw return on an actively managed portfolio tells an investor about the skill of the portfolio manager. What computations one would need to undertake in order to transform the raw return into a measure which is informative about manager skill? Are there any pitfalls or risks associated with these computations that might erode the accuracy of the skill measure that you have proposed?

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