The Cost of Active Management Is the Coefficient $\sigma$ ER, and It Is Sometimes Referred to as
A) Market

question 24

Multiple Choice

The cost of active management is the coefficient $\sigma$ ER, and it is sometimes referred to as

• A) market timing.
• B) reward for risk.
• C) excess reward.
• D) excess risk.
• E) tracking error.

---

Definitions:

Autoclave

A pressure chamber used to sterilize equipment and supplies by subjecting them to high-pressure saturated steam at 121 °C or more.

Distilled Water

Water that has been purified by a process of boiling and condensation, removing impurities and minerals.

Sterilizing Items

The process of making an object free from bacteria, viruses, and other microorganisms by applying heat, chemicals, or radiation.

Drying Cycle

A phase in the operation of a dryer or similar appliance where moisture is removed from items, typically using heated air.