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:

Adaptation-level Phenomenon

A psychological principle suggesting that individuals judge new experiences based on past experiences and the levels of stimulation they have become accustomed to.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, drama, or other forms of expression.

Aggressive Action

Behavior intended to harm or injure another person, either physically or psychologically.

Behavior Feedback

Information received about one's actions, which can influence future behavior by reinforcing desired behaviors or discouraging undesired ones.