Keeping Alpha and Beta Separate: An Active Manager's Utility Maximization Guidepost

I've created a document summarizing the critical lessons taught by Grinold and Kahn in the inexplicably little-known appendix to chapter 4 of their otherwise famous text, Active Management (McGraw Hill, 2nd Edition 2000). This is critical material. Anyone interested in active management, including market timing, should find it interesting--if for no other reason than that it takes the terse and difficult language of the original and puts it in far more approachable form. This document gives an easy-to-follow mathematical understanding of the differences between alpha and beta--and even active beta.Waring's summary of Grinold's and Kahn's Appendix to Chapter 4, book "Active Management"