Tracking error is defined as
A) the difference between the returns on the overall risky portfolio versus the benchmark return.
B) the variance of the return of the benchmark portfolio.
C) the variance of the return difference between the portfolio and the benchmark.
D) the variance of the return of the actively-managed portfolio.
Correct Answer:
Verified
Q1: The beta of an active portfolio is
Q2: Even low-quality forecasts have proven to be
Q3: The Treynor-Black model requires estimates of
A) alpha/beta.
B)
Q4: If a portfolio manager consistently obtains a
Q6: Passive portfolio management consists of
A) market timing.
B)
Q7: Alpha forecasts must be _ to account
Q8: Active portfolio management consists of
A) market timing.
B)
Q9: _ can be used to measure forecast
Q10: Benchmark risk
A) is inevitable and is never
Q11: Active portfolio managers try to construct a
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