Tracking Error Will Be Zero Where an Index Fund Is

question 15

True/False

Tracking error will be zero where an index fund is always able to perfectly replicate the underlying index.

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Definitions:

Voting Rights

The rights of shareholders to vote on corporate matters, such as the election of the board of directors.

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority to adjudicate disputes and interpret the law.

Swing Voters

Swing voters are individuals who are not consistently loyal to a single political party and can swing their vote from one party to another, often influencing the outcome of elections.

Undecided

A term often used in polling and elections to describe voters or participants who have not yet made a decision or declared their preference.