There Is a Direct Relationship Between a Passive Portfolio's Tracking

question 9

True/False

There is a direct relationship between a passive portfolio's tracking error relative to its index and the time and expense necessary to create and maintain the portfolio.

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Definitions:

Capital

Economic resources that are used to produce goods and services, including buildings, machinery, tools, and equipment.

Labor

The human effort, including both physical and mental, used in the production of goods and services.

Coffee Machines

Devices designed for brewing coffee, which can vary widely in their functionality, size, and brewing capacity.

Employees

Individuals who work for a business or organization and receive compensation for their labor, often guided by a contract of employment.