The Table Below Provides Returns on a Portfolio Along with Returns

question 41

Multiple Choice

The table below provides returns on a portfolio along with returns for the corresponding benchmark index for the past eight quarters. The table also provides the difference between portfolio returns and the benchmark index, the average of these differences over the past eight quarters and the standard deviation of these differences. The annualized tracking error for this period is

• A)2.36%
• B)4.08%
• C)2.89%
• D)3.33%
• E)1.18%

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Definitions:

Myelinated Neurons

Myelinated neurons are nerve cells covered with a fatty substance called myelin, which increases the speed at which electrical signals travel along the nerve fibers.

Transmit Signals

The process by which information is conveyed through an organism's body or via various electronic or mechanical systems.

Absorb Nutrients

The process by which organisms take up vitamins, minerals, and other nutritional substances from their environment or diet for health and growth.

Mitochondria

Organelles within a cell that generate most of the cell's supply of adenosine triphosphate (ATP), used as a source of chemical energy.