In Equity Portfolio Management, Tracking Error Occurs When

question 22

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:

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The personal trait of resilience and strength in facing stress and adversity.

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