If the Market Is Efficient, the Tracking Error Between Indexed

question 9

True/False

If the market is efficient, the tracking error between indexed funds and the market return will be zero.

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Definitions:

Microsystem

In ecological systems theory, the immediate environments with which an individual interacts, such as family and school.

Mesosystem

A term from Bronfenbrenner's ecological systems theory referring to the interconnections between the microsystems, or the immediate environments, in a person's life.

Macrosystem

A term in ecology and sociology referring to the broadest level of the environment, encompassing cultural values, laws, and societal norms.

Exosystem

A concept in ecological systems theory referring to the larger social systems that indirectly influence an individual, such as community structures or governmental policies.