In Equity Portfolio Management,tracking Error Occurs When

question 3

Multiple Choice

In equity portfolio management,tracking error occurs when

• A) The managed portfolio outperforms the benchmark portfolio.
• B) The managed portfolio under performs the benchmark portfolio.
• C) The return volatility of the managed portfolio is positively correlated with the return volatility of the benchmark portfolio.
• D) The return volatility of the managed portfolio is negatively correlated with the return volatility of the benchmark portfolio.
• E) The return volatility of the managed portfolio is not correlated with the return volatility of the benchmark portfolio.

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Definitions:

Brand and Reputation

The perception and recognition of a company or product based on qualities, values, and performance, significantly influencing consumer behavior and corporate success.

Brand and Reputation

The distinct identity and public perception of a company or product, shaped by consumer experiences, advertising, and media.

Short-termism

The focus on achieving immediate results or gains, often at the expense of long-term objectives or sustainability.

Sustainability

The practice of meeting current needs without compromising the ability of future generations to meet theirs, often focusing on environmental conservation and resource management.