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Discuss the Pros and Cons of "Tracking

question 47

Essay

Discuss the pros and cons of "tracking." Would you want to be in an education system with a lot of tracking? What do we gain and lose with such a system?
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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, suggesting that the expected return on an investment is related to its risk level.

Portfolio Variance

A measure of the dispersion of returns of a portfolio from its mean, indicating the level of investment risk.

Portfolio Beta

A measure of the sensitivity of a portfolio's returns to market returns, representing its relative market risk.

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