The Table Below Provides Returns on a Portfolio Along with Returns

question 54

Multiple Choice

The table below provides returns on a portfolio along with returns for the corresponding benchmark index for the past eight quarters. The table also provides the difference between portfolio returns and the benchmark index, the average of these differences over the past eight quarters, and the standard deviation of these differences. The annualized tracking error for this period is

• A) 2.36 percent.
• B) 4.08 percent
• C) 2.89 percent.
• D) 3.33 percent.
• E) 1.18 percent.

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Definitions:

Cleanliness

The state or quality of being clean and free from dirt, germs, and other contaminants, important for health and hygiene.

Mouthwash

A liquid product used for cleaning the mouth, improving oral hygiene, and freshening breath.

Perfectionist

An individual who strives for flawlessness and sets excessively high performance standards, accompanied by overly critical self-evaluations and concerns regarding others' evaluations.

Efficiency

The ability to accomplish a job with a minimum expenditure of time and effort.