Tracking Error Is Defined as

question 28

Multiple Choice

Tracking error is defined as

• A) the difference between the returns on the overall risky portfolio versus the benchmark return.
• B) the variance of the return of the benchmark portfolio.
• C) the variance of the return difference between the portfolio and the benchmark.
• D) the variance of the return of the actively-managed portfolio.

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Definitions:

Externalized Coping Practices

Refers to strategies used to manage stress or emotional distress that involve actions or activities external to one’s internal thought processes.

Individualist Cultures

Societies that stress the importance of personal achievement and independence over collective goals or group cohesion.

Remoralization

The process of regaining a sense of moral commitment or ethical direction, often in a therapeutic or personal development context.

Remediation

The process of correcting or improving a deficiency or problem area, often used in educational and environmental contexts.