Tracking Error Is The

question 13

Multiple Choice

Tracking error is the:

• A)difference between the cash flows of the tracking portfolio and the cash flows of the project.
• B)difference between the cash flows of the tracking portfolio and the initial investment of the project.
• C)sum of the cash flows of the tracking portfolio multiplied by the difference in the risk-free rate and the discounting rate.
• D)difference between the NPV of the tracking portfolio and the initial investment of the project.

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Definitions:

Caregiver

A person who provides care for another individual, often a family member or friend who has a disability, chronic illness, or is of aging.

Upset

A state of being unhappy, disappointed, or worried.

Separation Anxiety

A disorder characterized by excessive fear or worry about being apart from family members or individuals to whom a person is attached.

Emotional Disorder

A type of mental health disorder that primarily affects a person's emotional state and can disrupt daily functioning.