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:

Heart Ailment

A broad term for any condition affecting the heart's function, which can range from congenital defects to acquired diseases like coronary artery disease.

Milgram's Study

An experiment focusing on the conflict between obedience to authority and personal conscience.

Shock

A sudden and often intense disturbance of the mind, emotions, or sensibility, typically resulting from an unexpected event or experience.

Stanley Milgram

A psychologist famous for his experiments on obedience, demonstrating that people are willing to obey authority figures even when it involves harming others.